MetroIntelligence Economic Update by P. DUFFY
Existing home sales decline another 5.4 percent in May, down 14.2 percent year-on-year
Existing-home sales declined for the fifth straight month to a seasonally adjusted annual rate of 5.12 million. Sales were down 5.4% from May and 14.2% from one year ago. The median existing-home sales price climbed 13.4% from one year ago to $416,000, a new record high. The inventory of unsold existing homes rose to 1.26 million by the end of June, or the equivalent of 3.0 months at the current monthly sales pace.
Purchase loan applications fall 7 percent from previous week and 19 percent year-on-year
The Market Composite Index for mortgage applications decreased 6.3 percent on a seasonally adjusted basis from one week earlier, with purchase loans falling 7 percent (and down 19 percent year-on-year) and refinance activity falling 4 percent (and down 80 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages increased to 5.82 percent from 5.74 percent.