Market Update - Rates, appreciation, new & pending home sales, PCE inflation, and Q1 GDP

Good morning and happy Friday. Jordan Keck here, your lender buddy, with your weekly market update. Kicking off, interest rates, pretty stable week over week, moving from 7.02% to 7.05%. And again, a little bit changes here from day to day, but overall fairly stable, which is a good thing in this market right now. As far as weekly mortgage tip, we have a brand new buy before you sell program, kind of a bridge loan of sorts that allows you to use up to 70% of the value on your current home minus your current mortgage to go towards a zero interest loan on the new property. So zero interest on the money you're pulling out, can get a standard conventional Fannie Mae loan on the next property, and have a timeframe to be able to buy before you sell. You do not have to count the mortgage liability on your departing residence. This is a great product. And so if you or anyone you know is interested in this, whether it's in or out of state, a lot of times, some of you may know that our former bridge product or cross-collateral loan, you had to have both properties in the same state. This one does not have that requirement. So great product. Let me know if you're interested or if your team would like some information about it. Happy to do a presentation. Let you know how you can use this to get more clients, offers accepted, no contingencies, and buy before they sell. Next up, Case-Shiller and FHFA home price appreciation came in for the month of April, showing up 0.3% and 0.2% respectively. Case-Shiller, remember, takes into account all properties regardless of price point. FHFA only takes into account properties that are financed with loans below the conventional maximum. Tends to be slightly on the lower price end of the two. Case-Shiller is seasonally adjusted, so it came in again 0.3 for the month, but unseasonally adjusted is up 1.2% for the month alone. Prices are up 6.3% year over year, down slightly from the previous report of 6.5, showing that the rate of growth is decelerating. So still increasing year over year, just not as fast as it was FHFA, similarly, same number, up at 6.3% year over year, down from 6.77% in the last report. New home sales, so sales on homes that are brand new, new construction properties, fell 11.3% in May to $619,000 for an annualized pace, coming below estimates. This does look a little bit worse due to an upward revision they had in the previous month in April from $634,000 to $698,000. $8,000. Without that revision, sales would have only fallen 2.4% month over month. New home sales year over year are down 16.5%. And then pending home sales, so contracts that are signed but not closed on existing homes, those fell 2.1% in May, lower than the 1% gain that was expected. This, and potentially the same for new home sales, is likely due to that we did see higher rates in April. and those rates continued to improve a little bit in the month of May, so we may see that strength showing up in the next report as far as pending home sales. Year-over-year pending home sales down 6.6%. Next up, PCE inflation, the personal consumption expenditures, and this is the one the Fed looks at as the most important, came in flat overall for the month of May, which was exactly in line with estimates. Year-over-year dropped from 2.7% to 2.6%. 6%, and then the core rate, which is the one they look at the most, which strips out food and energy prices, this rose 0.08% for the month, which gets rounded up to 0.1% growth, which is exactly in line with estimates. Core inflation, which just again strips out food and energy, that fell from 2.8% to 2.6% year over year, getting very close to that 2.0% number the Fed is hoping for. And finally here, the Q1 final GDP reading. So there's basically 3 readings. There's an initial, a revised, and then a final. Final one came in showing the US grew by an annualized growth rate of 1.4% per year. This is a slight increase from the previous 1.3% we saw in report, but still overall pretty weak considering that there's a large amount of emergency government spending that goes into this number. Showing that consumer spending may continue to be on a decline, which is why those inflation numbers are starting to drop a little bit more. Thank you as well for all of those who signed up for Poker Night tonight. Should be a great time. We've maxed out at 30 confirmed. Look out for the next date going to be in July. And then of course, again, in August, we're going to likely do this every single month, just have a great response on it. So for those of you who were able to get in, looking forward to seeing you tonight. Those who have not, sorry, couldn't make it. Again, let me know if you haven't, let me know if you want to be on the invite for future events, and I'm happy to let you know. And lastly, of course, Independence Day next week on Thursday is a federal holiday. So no closings allowed for that day. Make sure you're planning accordingly. Have a great final few days of your month. We'll see you in July. Take care.