Mortgage Applications

Mortgage applications increased 5.1% for the week ended June 15.  Applications for purchases increased 4%, while applications for refinances increased 6%.  The adjustable-rate mortgage (ARM) share of total activity rose to 7% as buyers are opting for the advantage offered by ARM’s of lower payments in the beginning as the initial interest rate is typically lower than that of a fixed rate. 

Existing Home Sales

Existing home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 0.4% in May to a seasonally adjusted annual rate of 5.43 million. 

The median existing-home price, $264,800, for all housing types was up 4.9% from the prior year.  This was the 75^th consecutive month of year over year increases.  The median price for single family homes was $267,500, 5.2% above year ago prices.      

Housing inventory increased 2.8% from April, but it is 6.1% below year ago levels.  Unsold inventory is at a 4.1-month supply at the current pace of sales.  Typically, a 6-month supply is associated with a balanced market. 

Regional Breakdown

• The Northeast (+4.6%) was one region that saw a pickup in sales.  The median price in the Northeast, $275,900, was down 1.8% from a year ago.
• In the West, sales declined 0.8%, while the median price, $395,800, was up 7.2% from May 2017.
• Existing home sales in the South was lower by 0.4%, and the median price, $233,100, was 4.5% above a year ago.
• The Midwest saw existing home sales decline 2.3%, and the median price, $209,900, was 4.2% above May 2017.

The Northeast was the only region that saw year over year median prices decline.  It also was the only region that saw sales of existing homes increase in the month of May.  As prices continue to rise, and interest rates climb, affordability becomes an issue.  Buyers may be taking a breather with the hope that prices will move lower rather than chase prices higher. 

Markets

The Dow is once again the weakest of the major indices.  After opening higher by 71 points, the Dow quickly gave up its gain, and it is now flatlining near unchanged.  The Russell 2000 and Nasdaq opened higher and are continuing to add to those gains.  The Russell and Nasdaq are both at all-time highs, up 0.82% and 1%, respectively.