Today's Mortgage & Real Estate Markets

New home sales fell 6.2% in April after two straight monthly gains, as affordability challenges continue to impact buyers.

At the same time, new Case-Shiller data showed national home prices are still up 0.7% from a year ago, while the FHFA reported a stronger 1.7% annual gain for homes backed by conventional loans.

Looking ahead, economists surveyed by Fannie Mae and Pulsenomics are projecting approximat 14% cumulative home price growth over the next five years.

Headline Personal Consumption Expenditures rose 0.4% in April, slightly below expectations, while the annual inflation rate increased to 3.8%. Core PCE, the Fed’s preferred measure that excludes food and energy, rose 0.2% for the month.

The Fed continues to balance two major concerns: inflation that’s still running too high and some signs of labor market cooling. Ongoing tensions in the Middle East have also kept inflation concerns in focus, particularly because of the potential impact on energy prices.

Markets will be closely watching the Fed's upcoming commentary after the June 17th meeting for more direction on future interest rate