MetroIntelligence Economic Update by P. DUFFY
Existing home sales jump 20.7 percent in June, but still down 11.3 percent year-on-year
Total existing-home sales jumped 20.7 percent from May to a seasonally-adjusted annual rate of 4.72 million in June. Sales overall, however, dipped year-over-year, down 11.3 percent from a year ago. Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019. The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.
Purchase loans rise 2 percent from previous week, rates edge up slightly
The Market Composite Index increased 4.1 percent on a seasonally adjusted basis from one week earlier, with purchase loans rising 2 percent (up 19 percent year-on-year) and refinance activity rising 5 percent (up 122 percent year-on-year). The average contract interest rate for 30-year fixed-rate mortgages edged up to 3.20 percent from 3.19 percent.
U.S. house prices slipped 0.3 percent in May, but up 4.9 percent year-on-year
FHFA: Although U.S. house prices fell 0.3 percent in May from April, they still rose 4.9 percent year-on-year. For the nine census divisions, seasonally adjusted monthly house price changes from April 2020 to May 2020 ranged from -1.0 percent in the New England division to +0.1 percent in the South Atlantic division. The 12-month changes were all positive, ranging from +3.7 percent in the New England division to +6.3 percent in the Mountain division.
Consumer spending rebounds from March lows, but services still suffering
Nationally, consumer spending bottomed out in the last week of March 2020, with the seven-day moving average for credit/debit card spending 33 percent lower than in January. Since then, consumer spending has somewhat normalized, with consumer spending at the end of June down 9 percent than in January.
91.3 percent of apartment households made full or partial rent by July 20
91.3 percent of apartment households made a full or partial rent payment by July 20 according to the National Multifamily Housing Council (NMHC)’s Rent Payment Tracker of 11.1 million units of professionally managed apartment units across the country. This is a 2.1-percentage point decrease from the share who paid rent through July 20, 2019 and compares to 92.2 percent that had paid by June 20, 2020.