May 16, 2023 | Driving It Home with ABoR's Housing Economist

Last week, we saw the release of some important economic indicators along with April's housing statistics. Inflation remains high. Slowing consumer spending indicates a cooling economy despite persistently high consumer inflation and a strong labor market. Consumer sentiment also took a hit, falling to a six-month low in May. Looking ahead, we can expect turbulence in the mortgage market due to stress in the regional banking system and the decision on the debt ceiling affecting the bond market, which closely tracks the 30-year fixed mortgage rate. However, if the yield on the 10-year Treasury falls, we may see mortgage rates follow suit. Our April housing statistics show the market adjusting to current conditions, with both sales and home prices contracting on a YoY basis. We remain optimistic about the long-term as the moderation in home prices reduces the drag of high mortgage rates on affordability. Register for Market Shift Conversations: Part Three this Friday, May 19! https://www.abor.com/event-type/market-shift-coversations Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2023/05/DIH-5-16-2023-Transcript.pdf Connect with us on socials: https://www.abor.com/socials