Rates about flat this week…

Realtor Confidence Index

The May Realtor Confidence Index showed that housing competition is heating up – There were 3.3 offers per sale, up from 3.1 in the previous report. This is the highest reading since June, and for perspective, the all-time high was 5.5 in April 2022. Additionally, 31% of homes sold above list price. 

Another interesting stat – 25% of buyers waived inspection contingencies, the highest level since June 2022.

Existing-home sales increase in May, but down on the year

Existing-home sales marginally increased in May, according to the National Association of Realtors®. Sales showed a mixed performance across the four major U.S. regions, with improvements in the South and West and pullbacks in the Northeast and Midwest. All four regions experienced year-over-year sales declines.

In the Northeast, total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – fell 2% from April, and are now down 25.4% vs last year.

Quick notes…

Parking is making the housing crunch worse. There's more square footage in the U.S. devoted to parking cars than housing humans.

Despite obstacles, the homeownership rate for below-median income households has increased to 53% from 48% since 2016.

Fed members signal more hikes to come - after no rate hike in June, most Fed members project 2 additional rate hikes to take place this year in an effort to bring inflation down to the 2% target. As inflation drops, mortgage rates will follow.

Loan product of the week!

Fix & Flip - Designed for investors who are seeking short-term, interest-only financing to acquire and improve a property based on its “as repaired value” (ARV).

• Finance up to 75% of ARV and 80% of “as-is” value

• 1 year, interest-only financing

• Non-owner Investment properties only, purchase and refinance eligible

• Rate and terms determined per project and borrower experience level

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