Housing Finance Watch (Week 32, 2023)

By Edward J. Pinto | Tobias Peter | Sissi Li

August 15, 2023

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Key takeaways:

Key takeaways:

  • The median purchase rate rose 0.1 ppts. over the past week to 6.975%, just 1.5 basis points below the peak level reached in November 22. Mortgage News Daily reported a daily avg. 30-year rate of 7.24% on August 14th.
  • Purchase volume was up 10% from last week, down 29% 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 the months of July and August, and the first three weeks of 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 of the country, work from home, and continued home price arbitrage opportunities provide further support.