Key takeaways:
The median purchase rate rose 1/8 ppts. over the past week to 7 1/4%, setting a new series record. Mortgage News Daily reported a daily avg. 30-year rate of 7.29% on August 28th.
Purchase volume was up 24% from last week, down 25% from the same week in 2019, and down 30% YTD compared to 2019.
Y-o-y HPA was 3.5% in July 2023 and is projected to increase to 4% for August, September, and the first week of October 2023.
Despite the subdued rate of purchase activity and historically high rates, y-o-y HPA has begun to accelerate. This is because buyers are well-qualified and highly motivated by a historically tight supply.
Cooling, yet still strong job numbers, low levels of foreclosures in most areas, work from home, and continued home price arbitrage opportunities provide further support for robust HPA.
