Markets in a Minute, Housing Market Updates July 5, 2023

Here’s a brief update on this week’s housing and financial market activity.

The Economy

• The latest and conclusive assessment of the first quarter GDP revealed a 2% economic growth, surpassing the previous estimate of 1.3%.
• Last week witnessed the sharpest decline in unemployment applications since October 2021, indicating a significant decrease. However, despite the drop, the demand for workers has gradually softened.
• In June, consumer confidence experienced a significant surge, reaching its peak level since January 2022.

Housing Market News

• During May, new home sales experienced a significant surge, increasing by 12%. Buyers flocked to new homes due to the limited availability of older homes on the market.
• For the week, purchase mortgage applications saw a 3% rise. However, compared to the previous year, applications were 21% lower, primarily due to insufficient inventory rather than a lack of demand.
• In April, there was a modest increase in house prices, with a 0.7% rise compared to March, as reported by the FHFA. Year over year, prices showed a growth of 3.1%.

The Last Word

“Perseverance is failing 19 times and succeeding the 20th.”
–Julie Andrews