MetroIntelligence Economic Update by P. DUFFY
Existing home sales fall 3.4 percent in May and 8.6 percent year-on-year
Existing-home sales declined for the fourth straight month in May to a seasonally adjusted annual rate of 5.41 million. Sales were down 3.4% from April and 8.6% from one year ago. At $407,600, the median existing-home sales price exceeded $400,000 for the first time and represents a 14.8% increase from one year ago. The inventory of unsold existing homes rose to 1.16 million by the end of May, or the equivalent of 2.6 months at the current monthly sales pace.
Purchase loan applications rise 8 percent from previous week but down 10 percent year-on-year
The Market Composite Index for mortgage applications increased 4.2 percent on a seasonally adjusted basis from one week earlier, with purchase loans rising 8 percent (but down 10 percent year-on-year) and refinance activity falling 3 percent (and down 77 percent year-on-year). The adjustable-rate mortgage (ARM) share of activity increased to 10.6 percent of total applications. The average contract interest rate for 30-year fixed-rate mortgages increased to 5.98 percent from 5.65 percent.
Pending new home sales index falls 2.3 percent in June and 6.4 percent year-on-year
The New Home PSI came in at 135.4 for May, representing a 6.4% decrease from May 2021. The index is 22.3% below cycle highs. On a month-over-month basis, seasonally adjusted new home sales fell from April to May, down 2.3%, posting the fourth consecutive month-over-month decline.