Housing markets

While the share is slightly lower than at the start of 2023, the market is not expected to slip back to lower pre-pandemic levels, CoreLogic said.

A shortage of listings has pushed up prices, boosting the total value of US homes to a record $47 trillion, Redfin reported. 

Renovations, already the leading use for these borrowings, increased their share to nearly two-thirds of the products' market, the Mortgage Bankers Association said.

Ten Western states that benefited from a pandemic-driven boom reported value declines in May, CoreLogic said.

Researchers at the government-sponsored enterprise also maintained their outlook for a modest recession but moved anticipated onset to the fourth quarter this year.

A larger share of sellers were optimistic in May, but the percentage of enthusiastic buyers fell, according to Fannie Mae's Home Purchase Sentiment Index.

Construction activity in smaller cities also saw a significant annual decline, according to the National Association of Home Builders.

But there are regional variations in housing markets across the country, the Federal Housing Finance Agency said.

The Mortgage Bankers Association sees the likelihood of a rise in sales activity later this year based on recent construction trends, in a turnaround from the 2022 market.

Low interest rates on 2021 and 2022 mortgages might mean low prepayment rates, exposing investors to duration risk on supported mortgage-backed securities.

Home price overvaluations over 10% are easing in some markets, analysts say, but RMBS investors are still cautiously tightening liquidity amid uncertainty.

Housing costs increased at the slowest pace in over a decade nationwide, even while monthly growth now exceeds its pre-pandemic level.

Stronger than expected demand and home prices drove the latest forecast.

Fannie Mae researchers found housing costs decelerating for the fourth straight quarter, but limited inventory may be driving hopeful buyers to look for opportunities in the new-construction market.

But overall availability still remained near a 10-year low in March, with government-backed products falling for the third time in four months, the Mortgage Bankers Association found.

Last month saw purchase rate locks increase by 44%, jumping past the 30% average in February, according to Black Knight's report.

Affordability constraints have made borrowers who bought properties within the last 12 months increasingly vulnerable to price declines.

Lower mortgage rates during the early part of the month, along with fewer properties for sale helped to drive values higher.

Purchases of new single-family homes increased 1.1% to an annualized 640,000 pace after a 633,000 rate in January, government data showed Thursday.

And in January, all-cash buyers reached their highest share in nine years, at 32.1%, Redfin said.