Housing markets

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.