Shelter Six:  Home Sales Down Slightly but Inventory Up Slightly

June 25, 2018 by · Leave a Comment 

1. May Existing Home Sales decreased slightly from April and were 3% lower than a year ago.

2. National home inventory was up 3% from April to a 4.1-month supply (6 months is considered healthy), but still 6% lower than a year ago.

3. Home builders may be helping to address the shortage of inventory as May Housing Starts jumped higher than expected (5%) from April, to the highest level since July 2007.

4. The Trump Administration formally rolled out a plan last week to massively reorganize the federal government including several significant changes to housing and finance.

5. One big logical change would be USDA loans moving from being under the Department of Agriculture to HUD.  A similar proposal to move VA under HUD was rejected.

6. The biggest overhaul would be Fannie Mae and Freddie Mac transitioning to fully private entities that still had access to a federal guarantee but with greater competition, transparency, and accountability, as well as less risk of a taxpayer-funded bailout.

Rate Update

After an extremely quiet week, mortgage rates remain unchanged.

This Week

New Home Sales will be released on Monday, both Durable Orders and Pending Home Sales on Wednesday, and Core PCE on Friday.