Housing Finance Watch (Week 33, 2023)

By Edward J. Pinto | Tobias Peter | Sissi Li

August 21, 2023

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Key takeaways:

Key takeaways:

  • The median purchase rate rose 0.15 ppts. over the past week to 7.125%, setting a new series record.
  • Purchase volume was down 20% from last week, down 38% from the same week in 2019, and down 30% YTD compared to 2019.
  • Y-o-y HPA was 2.9% in June 2023 and is projected to increase to 4% for July, August, and September 2023.
  • Despite the subdued rate of purchase activity and relatively high rates, y-o-y HPA has begun to accelerate. This is because buyers are well-qualified and highly motivated by a historically tight supply. Cooling, yet still strong job numbers, low levels of foreclosures in most areas, work from home, and continued home price arbitrage opportunities provide further support.