With all the talk about the economy, and waiting to see how Trump policy plays out, it’s nice to see the housing market delivering strong numbers. Across the U.S., May became the 63rd straight month of yearly housing prices increases, with the median price of $252.8k, up 5.8% over a year ago. The median number of days a property was on the market also dropped to a new low of 27 days. On the Mortgage side, rates continue to stay low with seasonally adjusted application volume rising 0.6%. Lenders are still seeing good application volume, but the “affordability” factor is at play as buyers’ personal income growth (e.g., 2-4% annually) is typically not moving forward at the same pace as housing prices. At some point, the tension between rising prices and upward rates will cause the market to naturally settle back into a more typical level of price increases/appreciation.
Geoffrey Davis – Mortgage Loan Consultant
First United Bank & Trust
6401 S. Custer Rd.
McKinney, TX 75070