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The Presidential Election is Impacting Mortgage Pricing

July 3, 2024

In this edition of Above the Line, the ramp-up to the presidential election, tepid home sales, and the U.S. economy's continued strength are all keeping mortgage rates above 7%. We also see unexpected dips in construction spending and slowing home price growth. 

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Resilient Economy Keeps Mortgage Rates Above 7%
HousingWireThe 30-year conforming rate stood at 7.11% on Tuesday, while the 15-year rate saw a steep rise to 6.99%. With the Federal Reserve unlikely to lower rates soon, little change is expected in the short term.

U.S. Construction Spending Unexpectedly Falls in May
U.S. construction spending dipped 0.1% in May, contrary to economists' expectations. The decline was primarily driven by a decrease in single-family homebuilding, influenced by higher mortgage rates. While overall construction spending increased 6.4% year-on-year, the recovery may be tempered by improving housing supply.

Home Price Growth Slows to Lowest Level Since October
CoreLogic's latest report shows U.S. home prices grew by 4.9% year-over-year in May, the lowest rate since October 2023. While limited inventory and high mortgage rates continue to push prices up, the pace of growth is decelerating. The Northeast continues to lead in price appreciation, with New Hampshire posting the highest annualized growth among states at 12%.

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