Mortgage Rates Hold Steady at Record Lows - 7/2/20
- Consumer confidence jumped more than expected in June, as loosened stay-at-home and quarantine restrictions raised hope for an economic recovery.
- The labor market rebound accelerated in June with the gradual re-opening of the economy. Payrolls rose by 4.8 million, and unemployment fell to 11.1% from more than 13% in May.
- Fed minutes released from last month’s meeting noted a need for “highly accommodative monetary policy for some time,” which signals mortgage rates should remain low.
- According to Case-Shiller, home price gains remained steady in April despite the coronavirus pandemic. The index posted a 4% year-over-year increase, up 3.9% from March.
- Pending home sales were up in May, spiking a record 44.3% over April. That beat expectations of a 15% rise, although sales were still 5.1% lower than last year.
- Inventory of homes for sale continues to hold back the housing market. The supply of existing homes in May was nearly 19% lower annually according to NAR.