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California Weekly Market Data ending June 3, 2024

Consumer confidence rises for the first time in four months

Higher inflation expectations and a greater chance of a recession in the next year continued to lower consumer optimism. Although May's confidence level was better than expected, it was still the second lowest in the last 18 months.


Latest inflation data signals a cooling trend

The average 30-year fixed mortgage rates dropped 12bps and moderated from the recent peak reached in the middle of the week after the news.  


Mortgage rates actually rise this past week

The average 30-year fixed mortgage rates dropped 12bps and moderated from the recent peak reached in the middle of the week after the news.   



labor market should remain solid in the second half of the year

While job hiring and wage growth continue to slow and the economy will likely soften in the next few months, the labor market should remain solid in the second half of the year as inflation eases more consistently in the third and fourth quarters of 2024. 


Total construction spending slows but residential bounces back

Elevated mortgage rates and fresh uncertainty around Fed rate cuts were likely the contributing factors for the slowdown in the overall construction spending in the latest report.


Mortgage delinquency up slightly from last year

With home prices projected to increase in 2024 and the economy likely to experience a mild growth for the year as a whole, delinquency rate could inch up before the end of the year but is not expected to rise sharply in the next 12 months.


The moderation in rates in the last two weeks should motivate more buyers and sellers to enter the market and bump the momentum up a notch in the midst of the homebuying season.


SOURCE : California Association of Realtors





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