Affordability declined in June compared to one year ago as the median family incomes rose by 2.3%, while the monthly mortgage payment increased 21.5%.
Mortgage rates showed little movement this week, with the 30-year fixed mortgage rate falling slightly to 2.86% from 2.87% the previous week.
Rents will be soaring in the coming months, especially for apartment units, as homebuilding retreated in July.
Retail sales recorded a seasonally adjusted total of $617.7 billion in July, a 1.1% decrease from the prior month.
The year started off with strong home price growth and continued for the second quarter of 2021, with 94% of the markets showing double-digit home price appreciation. National median prices rose 22.9% year over year to $357,900.
A strong labor market and higher consumer and producer prices overshadowed COVID-19 concerns, raising yield and mortgage rates. The 30-year fixed mortgage rate increased to 2.87% from 2.77%, but even with this increase, mortgage rates are still near historic lows.
Inflation continued to rise quickly in July. Over the last 12 months the inflation rate rose 5.4%, the same annual rate as in June.
To prevent widespread evictions, the federal government provided $46.55 billion in emergency rental assistance (ERA) to eligible renter households through the Consolidated Appropriations Act of 2021 ($25 billion) and American Rescue Plan Act ($21.55 billion).
The job market continues to make progress, with nearly a million more employed in the latest month. Compared to the peak employment of the pre-pandemic period, another 5.7 million jobs are still needed, which could happen by the end of the year or in early 2022.
The 30-year fixed mortgage rate fell to 2.77% from 2.80% the previous week, which translates to more homebuyers being able to benefit from historically low mortgage rates.
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