In the beautiful Pacific Northwest, where lush forests meet the roaring ocean waves, we turn our attention to the mortgage rates forecast for the week of June 12, 2023.Buying Land in Washington
Last week, amidst the scent of pine trees and the gentle sound of raindrops, we delved into Fannie Mae’s National Housing Survey and eagerly awaited the latest updates on mortgage rates and jobless claims.
Fannie Mae’s Survey Reflects Cascading Home Buyer Confidence in May
As the mist settled on the moss-covered trees, Fannie Mae’s report revealed a slight dip in home buyer confidence within the housing market during the month of May. The soaring prices of homes and the gradual rise of mortgage rates posed challenges for potential home buyers, even as they created favorable conditions for sellers. Surveying the local population, we found that 65 percent of consumers, captivated by the charm of the region, believed it was an opportune moment to sell their homes. This figure marked a slight increase from April’s survey, where 62 percent of respondents shared the same sentiment. Notably, this was the highest level of consumer optimism recorded for the Home Purchase Sentiment Index since the balmy days of July 2022, when the sun kissed our shores.
Mr. Mark Palim, a Fannie Mae Vice President and Deputy Chief Economist said: “Consumers also indicated that they didn’t expect affordability constraints to improve in the near future.” 81 percent of renters surveyed believed that it would be difficult to get a mortgage today.
Mortgage Rates Fall, Jobless Claims Rise
Freddie Mac reported lower mortgage rates last week after three consecutive weeks of rising rates. The average rate for 30-year fixed-rate mortgages fell by eight basis points to 6.71 percent. Rates for 15-year fixed-rate mortgages averaged 6.07 percent and 11 basis points lower.
Jobless claims rose with 261,000 initial jobless claims filed as compared to the expected reading of 236,000 first-time claims filed and the previous week’s reading of 233,000 filings.
What’s Ahead
This week’s scheduled economic news includes The Fed’s Federal Open Market Committee Statement and Fed Chair Jerome Powell’s scheduled press conference. The University of Michigan will release its monthly reading on consumer sentiment and weekly readings on mortgage rates and first-time jobless claims will also be released.
