MetroIntelligence Economic Update by P. DUFFY
Existing home sales slip again to lowest level since start of pandemic
Existing-home sales fell for the third straight month to a seasonally adjusted annual rate of 5.61 million. Sales were down 2.4% from the prior month and 5.9% from one year ago. With slower demand, the inventory of unsold existing homes climbed to 1.03 million by the end of April, or the equivalent of 2.2 months of the monthly sales pace. The median existing-home sales price increased at a slower year-over-year pace of 14.8% to $391,200.
Purchase loan applications decline 12 percent from previous week and 15 percent year-on-year
The Market Composite Index for mortgage applications decreased 11.0 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 12 percent (and down 15 percent year-on-year) and refinance activity falling 10 percent (and down 76 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.49 percent from 5.53 percent.
New home mortgage apps fall 14.0 percent in April and 10.6 percent year-on-year
Mortgage applications for new home purchases in April decreased 10.6 percent compared to a year ago. Compared to March 2022, applications decreased by 14 percent. MBA’s estimate of new home sales declined for the fifth consecutive month to 701,000 units, the slowest sales pace since May 2020. The average loan size increased to a new survey high of $436,576, and over half of applications were for loan amounts greater than $400,000.