![\"First](\"https:\/\/staging2.mbsquoteline.com\/home\/wp-content\/uploads\/2022\/07\/first-ecb-rate-increase-11-years-record-inflation-mortgagetime-mbsquoteline-chart-1024x512.png\")
<\/a><\/figure><\/div>\n\n\n\nExisting Home Sales Fall as Housing Inventory Stagnates<\/h2>\n\n\n\n
Aside from the first ECB rate increase in 11 years, existing home sales fell for the fifth straight month in June to the lowest level since June 2020. In addition, existing home sales dropped 14% lower than last year at this time. On a more positive note, inventory levels rose 2% higher than a year ago, the first annual increase in three years. Despite the optimism, housing inventory sits at just a low 3.0-month supply nationally. Lastly, the ever-climbing median existing-home price soared 13% higher than a year ago at a record $416,000.<\/p>\n\n\n\n
While more inventory is badly needed in many regions, the latest data proved quite discouraging. In June, housing starts of single-family units declined 8% from May to the lowest level in two years. In a NAHB survey covering home builder sentiment, the outlook deteriorated far more than expected to the lowest reading since May 2020. Once more, higher prices and shortages for land, materials, and skilled labor presented major issues to a faster construction pace.<\/p>\n\n\n\n
Looking Ahead After First ECB Rate Increase Surprises Investors<\/h2>\n\n\n\n
After this week\u2019s first ECB rate increase surprised investors, they anxiously await this Wednesday\u2019s Federal Reserve meeting. Now, investors anticipate a 75-basis point rate hike. Also, they look for additional guidance on the pace of future rate hikes and bond portfolio reduction.<\/p>\n\n\n\n
Beyond that, New Home Sales and Consumer Confidence release on Tuesday. Second quarter GDP, the broadest measure of economic activity, comes out on Thursday. The core PCE price index, the inflation indicator favored by the Fed, publishes on Friday.<\/p>\n\n\n\n
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As the ECB launched its first rate increase in 11 years, mortgage rates ended the week slightly lower. Never miss an update with MBSQuoteline. To receive by-the-minute updates on mortgage-backed securities,\u00a0try our platform free for 14 days.<\/strong><\/a><\/p>\n\n\n\n Stay connected with MBSQuoteline on social media by following us on\u00a0Facebook<\/a>,\u00a0Twitter<\/a>, and\u00a0LinkedIn<\/a>.<\/p>\n\n\n\n All material Copyright \u00a9 Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission. To learn more about the MortgageTime\u2122 newsletter, please contact MBSQuoteline at 800.627.1077<\/a> or info@mbsquoteline.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" As the European Central Bank faces record-high inflation levels, this week\u2019s biggest news marked the first ECB rate increase in 11 years.<\/p>\n","protected":false},"author":9,"featured_media":4435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[426],"tags":[518,457,352,366,436,405,31,520,314,56,33,494,441,418,537,517],"class_list":["post-4431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgagetime","tag-balance-sheet-reduction","tag-consumer-confidence","tag-core-pce","tag-ecb","tag-european-central-bank","tag-existing-home-sales","tag-federal-reserve","tag-gdp","tag-gross-domestic-product","tag-inflation","tag-mbs","tag-median-existing-home-price","tag-mortgage-backed-securities-2","tag-new-home-sales","tag-personal-consumption-expenditures","tag-rate-hikes"],"_links":{"self":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/comments?post=4431"}],"version-history":[{"count":2,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4431\/revisions"}],"predecessor-version":[{"id":4436,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4431\/revisions\/4436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media\/4435"}],"wp:attachment":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media?parent=4431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/categories?post=4431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/tags?post=4431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"First](\"https:\/\/staging2.mbsquoteline.com\/home\/wp-content\/uploads\/2022\/07\/first-ecb-rate-increase-11-years-record-inflation-mortgagetime-mbsquoteline-data-1024x512.png\")
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