Shelter Six:  Inflation Takes Off as Economy Reopens

Reduced economic activity during the pandemic over the last year caused a large decline in inflation that was a key reason mortgage rates moved and stayed so low.

Now that the economy is reopening, inflation is really taking off and hitting the highest levels seen in decades.

Only time will tell how sustainable the rise in inflation will be, but last week key Fed members gave a reassuring message that they believe the price gains will prove temporary.

April New Home Sales were down nationally 6% from March and have flattened out in a range of 850k to 950k units per month.

April Pending Home Sales moved back to pre-covid levels falling 4.4% from March, although they were up 52% over last year’s low pandemic figures.

The median new home price is up nationally to $372,400, 20% higher than last year at this time.

Rate Update

Mortgage rates were flat last week as Mortgage News Daily reports the Conforming Purchase 30-Year Fixed-Rate decreased slightly to finish the week at 3.12%.

This Week

The ISM National Manufacturing Index is due out on Tuesday, the ISM National Services Index on Thursday, and Employment figures on Friday.

May 31, 2021 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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