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California Weekly Market Data ending April 15, 2024

Inflation Moves Wrong Way, Scares Bond Market

With consumer price inflation remaining sticky in the latest report, the Federal Reserve will likely stay put in their upcoming meeting in May.

Mortgage Rates React to Stronger-Than-Expected Economic Data

Higher-than-expected inflation caused a severe reaction in the bond market last week as 10-year Treasury rates jumped above 4.5% for the first time since November as the odds of a Fed rate cut before the end of the second quarter drop.

Housing Inventory Thaws, But Supply Still an Issue

Home sales are expected to moderate in response to this more recent jump in interest rates, but the strong economic data and low levels of unemployment continue to put pressure on a housing market that is near historic lows for supply.

Big Spending Report Shows Undaunted Consumers

Many growth forecasts for the first quarter are now being revised upward, which is likely to be viewed as a negative in the bond market because it will be seen as a reason the Federal Reserve will use to delay any rate cuts.

Housing Affordability Deteriorates for All Ethnic Groups in 2023

While interest rates are projected to decline in 2024, affordability is not likely to improve much this year as home prices are expected to climb moderately.

Builder sentiment stalls in April

The latest report also indicated that 22% of builders cut prices in April, a decline from 24% in March.  More than half (57%) of them continued to use sales incentives to attract buyers in April, a decline from 60% reported in March though.

SOURCE : California Association of Realtors

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