Good Monday A.M.,
Once again the equity market is volatile, it has been swinging from down on the day to up on the day and back again. Thus far the swings have not been huge, but I suspect we may see volatility rise. Bonds are doing well and the MBS is once again testing the ceiling of resistance, which we have not been able to break through. I still think it will take a drop in equities (which I see coming) for bonds and rates to improve. Some big news this week which doesn’t start until Wednesday. Housing data, GDP, Unemployment all on the calendar. The safe call is to lock here at the top of the range.
We are seeing a spike in Covid cases across many states (23 as of this a.m.) however markets are not seeing a strong reaction to it.
In advance of this week’s economic calendar, Zillow reports that housing inventory is now 17.1% below last year’s level and there are 3.8% fewer new listings from the prior week. New listings, while up 13.9% monthly, are down annually 16.6% year-over-year. Newly pending sales grew 2.8% week-over-week and were 17.7% higher than in May. Of the 35 largest metros studied by Zillow, newly pending sales have grown the most since last month in Philadelphia (62.7%); New York (58.1%); and Miami (37.9%).
Additionally, the median list price as of June 13 is $332,680—up 2.5% year-over-year and 0.8% from the prior week. Inventory is and will be tight.
To give a little color on housing… two great infographics to share below.
Searches for inspections and appraisals are rising:
And housing inventories continue to fall:
Please remain safe and stay healthy. Make today great!