Mortgage Rates Hold Steady
With little major economic data, it was another quiet week for mortgage markets, and rates ended last week nearly unchanged.
Existing Home Sales Dip
In June, sales of existing homes fell 3% from May to the lowest level in nine months. The median existing-home price of $435,300 was up a slim 2% from last year at this time, but at a record for the month of June. Inventories remain stuck at low levels, standing at just a 4.7-month supply nationally, below the roughly 6-month supply typical in a balanced market. However, inventories were 16% higher than a year ago.
New Home Sales Edge Up
Sales of new homes displayed better performance in June, rising slightly from May, but still were 7% lower than a year ago. The median new-home price of $401,800 was down 3% from last year at this time. In contrast to existing homes, the supply of new homes remains near the highest level since 2009. Existing home sales measure actual closing during the month, while new home sales are based on contracts signed, making them a leading indicator of future housing market activity.
Jobless Claims Hit Low
The Department of Labor releases the total number of new claims for unemployment insurance each week. The latest reading was just 217,000, below the consensus forecast and the lowest level since April. Bigger picture, this was far below the inflated figures seen during the early months of the pandemic, and in line with the levels which were typical during 2019. Weekly jobless claims are important because they are one of the timeliest indicators of labor market trends. While other recent economic reports suggest that companies may be scaling back on hiring new employees, this report indicates that they remain reluctant to lay off workers.
ECB Holds Rates Steady
Last Thursday, the European Central Bank (ECB) held benchmark interest rates unchanged at 2.0%, down from a record high of 4.0% in the middle of 2023. This move was widely anticipated, and the reaction was minor. In its meeting statement, the ECB said that the environment remains “exceptionally uncertain” due to trade disputes and that the risks to economic growth are “tilted to the downside.”
Mortgage Rates for the week of 7-28-2025