Fannie Mae’s June Home Purchase Sentiment Index (HPSI) revealed 61% of respondents think now is a good time to buy a home and 41% feel it’s a good time to sell–big rebounds from the survey’s record lows two months ago.
Also rebounding: realtor.com’s latest Housing Market Recovery Index posted the largest nationwide weekly gain since its inception, ending up just a smidge below its pre-COVID baseline.
Plus, Freddie Mac’s Chief Economist likes what he sees in the housing market across the country: “The summer is heating up as record low mortgage rates continue to spur homebuyer demand.”
REVIEW OF LAST WEEK
CERTAINTY BEATS UNCERTAINTY… Overlooking uncertainty about the path of the virus, investors kept stocks heading up, motivated by the emerging certainty the economy is solidly rebounding.
The recent string of economic surprises continued: after its biggest ever monthly gain, the June ISM Non-Manufacturing Index signaled that the services sector, providing almost 80% of our jobs, is expanding again.
Deliveries are getting back to normal, and the Producer Price Index of wholesale price inflation dipped, a good sign consumer prices should hold steady. Finally, initial jobless claims have now fallen 14 weeks in a row.
The week ended with the Dow UP 1.0%, to 26,075; the S&P 500 UP 1.8%, to 3,185; and the Nasdaq UP 4.0%, to 10,617.
As equities jumped, bonds slid. The UMBS 3.0% ended down 0.39, to $105.19. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate set a new all-time record low. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW?…The first quarter saw a record $6.5 trillion in tappable home equity—the amount a homeowner with a mortgage can borrow while maintaining 20% equity. Black Knight says more than 75% of homeowners are viable refinance candidates who could tap into equity and lower their interest rate.
THIS WEEK’S FORECAST
HOME BUILDING, RETAIL, CONSUMER SENTIMENT UP; JOBLESS CLAIMS, INFLATION DOWN… Forecasts call for a continued rebound in Housing Starts and Building Permits. Likewise for Retail Sales and University of Michigan Consumer Sentiment. All were no doubt helped by expected low Consumer Price Index inflation and an ongoing drop in Initial Unemployment Claims.
NOTE: Weaker economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and higher loan rates.
