Market Update - 4.13.23

For the week beginning April 7, 2023 – April 13, 2023, the 30 Year and 15 Year Conforming rates decreased from the previous week. On Friday, April 7^th, 2023, two key employment data points were released:

1 )Non-Farm Payrolls March, which showed a decline in job growth from 326K to 236K month over month.

2)Unemployment rate, which went down from 3.6% to 3.5%.  Wednesday’s CPI March was released showing a decline in inflation from 6.0% year over year prior month to 5.0%.  These numbers indicate inflation is slowing.

For the upcoming week of April 14, 2023 – April 20, 2023, key data will be released potentially determining the direction of interest rates. On Friday, April 14^th Retail Sales March will be released along with Monday’s April 17^th, NAHB housing market index, Tuesday’s April 18^th Housing Starts and building permits. Thursday April 20^th, 2023, Existing Homes Sales March will be released. Based on data from the previous week, Economists estimate there is now a 65.3% chance of a rate increase in May.

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Market in Review:

· Per Black Knights Production Metrics 83.04% of all Mortgage Volume for the week was Purchase transaction, followed by 14.4% Cash out and 2.55% rate and term refinance.  

· For the week 55.22% of all Retail loans originated were Government Loans (FHA, VA), while 44.78% were Conventional and Non-Conforming loans.

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News You Can Use:

· Top US Banks to Reveal $521 Billion Deposit Drop, Most in Decade

·  More millennial households own their home than rent

·  Current State of the Housing Market

·  Remodel Market Sentiment

·  Fed Expects banking Crisis to Cause recession this year

·  Mortgage Application Volume increases

· CME Fed Watch Tool

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Interest rate and annual percentage rate (APR) are based on current market conditions as of 04/13/2023, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC.  Not available in all states. Rate is as of 04/13/2023 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.

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