30-year mortgage rate drops to 5.3%

Mortgage rates tumbled last week after a surge in mid June, as talk of a recession grows louder, according to Freddie Mac. The 30-year fixed-rate mortgage average came in at 5.3%, dropping 40 basis points for the 7-day period ending July 6, according to Freddie Mac’s Primary Mortgage Market Survey. A week ago, the average had fallen 11 basis points to 5.7%, while in the same period last year, the rate stood at 2.9%. 

Read more: Mortgage rates drop 40 basis points as economic worries mount

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Home price growth in May decelerated at its fastest pace since 2006

Home price increases compared to 2021 fell from 20.4% in April t 19% in May, as affordability continues to plummet to levels not seen since the 1980s. About 36.2% of annual median household income was needed to purchase a home in mid-June, higher than in June 2006 when the market peaked. Deceleration would need to continue like this for more than 12 months to go back to the “normal” annual home price growth rate.

Title insurers are prepared for impending downturn: Fitch

At the end of 2021, title insurers’ risk-adjusted industry capital declined but remained supportive. The most recent measure of title insurer financial strength shows a drop from 204% in 2020 to 182% in 2021. However, they are still “well positioned to absorb near-term volatility associated with an evolving macroeconomic environment with higher inflation and interest rates," Gerry Glombicki, senior director at Fitch Ratings, said.

Manhattan home prices hit a record while sales frenzy winds down

Condos reached a median of $1.25 million, according to a recent report, as transactions increased 12% from a year ago. However, there are signs that the market is slowing down, including a drop in new contracts. Nevertheless, there is still hope that there could be a bounce back as mortgage rates stabilize and buyers and sellers adjust their expectations. 

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