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Mark Hemingway

Mortgage Market Update for June 23rd

Tuesday, June 23, 2020 - Article by: Mark Hemingway - Security Financial Services, LLC - Message

New Home Sales unexpectedly surged by 16.6% in May from April to an annual rate of 676,000 units versus the 635,000 expected. However, April's number was revised lower to 580,000 from 623,000. From May 2019 to May 2020 sales rose 12.7%. Sales rose in the Northeast, South and West while the Midwest declined. The median sales price was $317,900 while inventories are at a 5.6-month supply. Many housing pundits feel that the housing sector has bottomed out as states reopen. The New Home Sales report shows the number of newly constructed single-family homes.

As more and more states reopen for business, the housing sector should continue to prosper given the low rate environment and with pent-up demand from the near three-month shutdown of the economy. The MBA reports that total lending for home purchases and mortgage refinancings probably will total $2.65 trillion this year, the most since the $2.74 trillion seen 14 years ago, due in part to low rates. The MBA went on to say that many would-be buyers were shut out in April due to many stay-at-home measures along with first-time buyers seeking low rates.

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