Treasury yield increase drives mortgage rates higher in May
- 30-year mortgage rates averaged 6.82% in May, up 9 basis points from April.
- Moody’s credit downgrade and a weak 20-year Treasury auction spurred rate hikes.
- Concern over the $1.9T deficit being intensified by “One Big Beautiful Bill” may push borrowing costs even higher.
Inflation is almost at 2%. Will that prompt a Fed rate cut?
- April inflation slowed to 2.1% annually, down from 2.3% in March.
- Housing remains the largest driver of consumer spending.
- Tariff uncertainty may delay rate cuts, despite signs of easing inflation.
Existing-home sales edged lower by 0.5% in April
- April existing-home sales fell 0.5% to 4.00 million units, down 2% year-over-year.
- Median home price hit $414,000, up 1.8% from April 2024, a record high for the month.
- Inventory rose 9% from March to 1.45 million homes, a 20.8% annual increase.
