Employers added 272,000 jobs in May, far exceeding the consensus view among economists that payrolls would rise by 180,000 and the average of 232,000 over the past year
In less than a week, a series of reports has changed the outlook for the timing and magnitude of future Fed rate cuts, sending mortgage rates into a 5-day tailspin back below 7%
As rates on conventional mortgages head back above 7%, homebuyer demand for purchase loans is wilting, with applications dropping for a 3rd week in a row last week, MBA survey finds
Bond market investors shrug off Federal Reserve Governor Christopher Waller's warning that he wants to see 'several more months of good inflation data' before cutting rates
Homebuyers have yet to respond in force to drop in rates, which have been in retreat from 2024 highs for 3 consecutive weeks following Fed easing and soft jobs and CPI reports
Some borrwers were quick to spring into action, with applications for purchase loans rising by a seasonally adjusted 2% and requests to refinance up 5% week over week, MBA survey shows
Fannie Mae's latest National Housing Survey finds 67% of Americans agree April was a good time to sell, the highest level in nearly 2 years. But only 20% said it was a good time to buy
Rates have been in retreat as bond market investors who fund most mortgage loans react to the latest economic news and scaleback in 'quantitative tightening' by Fed policymakers
Requests for purchase loans dropped by 1% last week compared to the work before and were off 15% from a year ago, according to the latest Mortgage Bankers Association lender survey
Fannie Mae and MBA economists are now in agreement that mortgage rates will come down only gradually this year and next but that home price appreciation will slow
Rates for conforming loans pushed through 7% last week and continue to rise, as latest inflation data and remarks by Fed Chair Jerome Powell dim prospects that Fed will ease in June
Mortgage rates have already reclaimed much of the territory ceded last year and are poised to continue rising this week as latest numbers show inflation continuing to run hot
Bond market investors who fund most mortgage loans are increasingly convinced the latest inflation numbers mean the Federal Reserve won't cut rates in June
Jamie Dimon thinks interest rates could rise to 8% or more. He also said in a new letter that a recession and stagflation could be in the offing
Economic headwinds and a holiday weekend caused new listings and home tour requests to fall at the end of March, according to Redfin's report. The portal is still bullish on future spring activity