Report

Housing Finance Watch(Week 20, 2023)

By Edward J. Pinto | Tobias Peter | Sissi Li

May 22, 2023

PDF to full report

Key takeaways:

Key takeaways:

  • Median rates rose 1/8 ppts. to 6 1/2% from last week.
  • Purchase volume was 39% below 2019’s level.
  • Y-o-y HPA is projected to be at 1% in both May and June 2023.
  • Metros with less affordability continue to have slower y-o-y HPA. The Western metros of San Jose, San Francisco, Seattle, and Sacramento are already having y-o-y HPA declines.
  • Over time, if the unemployment rate increases to around 5.5%, price declines will spread to the low end of some FHA markets and to metros with stagnating or declining job growth. We expect the national seller’s market to end in 2023.
  • We expect the national seller’s market to end in 2023.