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Low housing inventory and still-strong demand kept prices high in March, according to the latest according to the S&P CoreLogic Case-Shiller National Home Price Index, released Tuesday. The annual growth rate in March 2023 was up 0.7%. On a month-over-month basis, the index was up 1.3% before seasonal adjustment.

This was the second month-over-month increase following seven consecutive month-over-month decreases.

“The modest increases in home prices we saw a month ago accelerated in March 2023,” Craig Lazzara, the managing director at S&P DJI, said in a statement. “The National Composite rose by 1.3% in March, and now stands only 3.6% below its June 2022 peak.”

Both the 10-city and 20-city composite price indexes posted annual declines but monthly gains. For the 20-city composite, 19 of the 20 cities reported lower prices in the year ending March 2023 versus the 12-month period ending February 2023, with Chicago being the only city to report an increase at 0.4%.

“Low inventory, maintained by an extremely low level of new listings coming onto the market, has fueled demand amongst the few buyers who can afford to stay shopping. As a result, prices started picking back up on a monthly basis in early 2023 following months of price stagnation and declines,” Nicole Bachaud, Zillow’s senior economist, said in a statement. “As inventory remains a challenge in this market, so too will affordability be rocked by stubbornly high prices that aren’t looking to move drastically any time soon. New construction could be the beacon of light the housing market desperately needs right now, as home builders are gaining confidence amongst rising sales, hopefully soon to translate to more residential construction breaking ground in the coming months.”

Yet again, Miami (7.7%) and Tampa (4.8%), reported the highest annual price gains among the 20-cities analyzed, but Atlanta was bumped from the top-three by Charlotte, which recorded an annual price increase of 4.7%.

“One of the most interesting aspects of our report continues to lie in its stark regional differences. Miami’s 7.7% year-over-year gain made it the best-performing city for the eighth consecutive month,” Lazzara said. “Tampa (+4.8%) continued in second place, narrowly ahead of bronze medalist Charlotte (+4.7%). The farther west we look, the weaker prices are, with Seattle (-12.4%) now leading San Francisco (-11.2%) at the bottom of the league table. It’s unsurprising that the Southeast (+5.4%) remains the country’s strongest region, while the West (-6.2%) remains the weakest.”

Although March marked the second consecutive month of monthly price increases, Lazzara does not believe the industry is out of the woods yet. “Two months of increasing prices do not a definitive recovery make, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end,” he said. “That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months.”

The average rate in March on a 30-year-fixed rate mortgage in March was 6.54%, with the rate dropping to 6.34% in April.

Relatedly, the Federal Housing Finance Agency (FHFA) recorded a 4.3% increase in home prices in the first quarter of 2023 from the first quarter in 2022. House prices were up 0.5% compared to the fourth quarter of 2022. The FHFA’s seasonally adjusted monthly index for March was up 0.6% from February.

House prices rose in 78 of the top 100 largest metropolitan areas over the last four quarters. Per the FHFA’s HPI, the annual price increase was greatest in Miami-Miami Beach-Kendall, FL at 14.1% while the San Francisco metro area experienced the greatest price decline at 10.1%.

Source: housingwire.com

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The number of contracts to purchase pre-owned homes was unchanged in April. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a forward-looking indicator of existing home sales, remained at the March level of 78.9. The index had seen some improvement over the first three months of the year but is now down 20.3 percent on an annual basis.

NAR Chief Economist Lawrence Yun attributed the lackluster sales during what is usually residential real estate’s most active season is due in part to ongoing inventory restraints. He added, “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving.”

While three of the four major regions saw an uptick in new sales contracts, those changes were negated by a sizeable decline in the fourth. The PHSI in the Northeast fell 11.3 percent from March to 59.1 and was 21.8 percent lower than the prior April. The Midwest’s index improved 3.6 percent to 78.4 which was down 21.4 percent on an annual basis.  

Pending sales in the South rose 0.1 percent to 99.6 in April while sinking by 16.7 percent year-over-year. A 4.7 percent increase in the West took that PHSI to 62.2, a 26.0 percent decline from April 2022.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes which are usually finalized within one or two months.  The PHSI was benchmarked at 100 in 2001, a number equal to the average level of contract activity during that year.

Yun noted that the South’s April reading was only a fraction of a point below the benchmark level. “Minor monthly variations in regional activity are typical,” he said. “However, cumulative results over many years clearly point towards a much greater number of home sales in the South. The South’s pending home sales activity is similar to that of 2001, but the Midwest’s activity has decreased by 22 percent in that same period, and the Northeast and West regions are both about 40 percent lower than they were in 2001.”

Existing-Home Sales for May will be reported on June 22.

Source: mortgagenewsdaily.com

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A month ago, federal data showed relatively flat prices from February to March. Friday’s fresh figures tell a different story.

This month’s personal consumption expenditures price index (PCE) suggests that inflation rose more sharply in April than in the preceding two months. The PCE increased 0.4% in April after rising 0.1% in March and 0.3% in February, according to a Bureau of Economic Analysis report released Friday.

The PCE measures consumer spending by tracking prices that U.S. consumers are currently paying for goods and services. The Bureau of Economic Analysis releases new PCE data on a monthly basis.

This month’s report found that:

  • Annually, the PCE price index rose 4.4% in April, compared to 4.2% in March. 

  • On an annual basis, prices for goods increased 2.1% in April, while prices for services increased 5.5%. In March, on an annual basis, the prices of goods increased 1.6%, while prices for services swelled 5.5%. 

  • Core PCE, which excludes food and energy, rose 0.4% from March to April after rising 0.3% from February to March. 

The PCE price index, and specifically core PCE, is the Federal Reserve’s preferred measure of inflation. The Fed, aiming to tame inflation, meets on June 13 and 14 to decide whether or not to raise the federal funds rate for the 11th time since March 2022.

In that same week, we’ll see another new inflation metric. On June 13, new consumer price index data will be released. Among other differences between that index and PCE, the CPI data is published by the Bureau of Labor Statistics.

As for the PCE, it’s compiled by the Bureau of Economic Analysis, which uses data from businesses and manufacturers by way of the U.S. Census Bureau. In calculating the index, the Census Bureau estimates what goods and services were sold on a month-to-month basis through surveys, quarterly reports and economic census. It also factors in the GDP, or gross domestic product.

Source: nerdwallet.com

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The expectation that the Federal Reserve might be done with hiking rates spurred the mortgage market last week. 

“Mortgage applications responded positively to a drop in rates last week, as the Fed signaled a potential pause at the current level for the federal funds rate in anticipation of inflation slowing and tightening financial conditions that will slow economic and job growth,” Joel Kan, Mortgage Bankers Association (MBA) vice president and deputy chief economist, said in a statement. 

The MBA data shows that mortgage applications increased 6.3% for the week ending May 5 from one week earlier. The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications. 

Borrowers’ demand followed a decrease in mortgage rates. The average 30-year fixed rate for conforming loans ($726,200 or less) fell to 6.48% last week from 6.50% the previous week. For jumbo loan balances (greater than $726,200), the rate declined to 6.33% from 6.37% in the same period, according to the MBA.   

At HousingWire’s Mortgage Rates Center, the Optimal Blue data showed rates even lower, at 6.43% on May 8, compared to 6.50% on May 1. The data is calculated using actual locked rates with consumers across 42% of all mortgage transactions nationwide.  

Mortgage rates reflect the expectation of the Fed’s next moves. On May 3, it raised its key federal funds rate by 0.25 bps to 5% to 5.25%. However, when announcing its decision, the Fed cut some language about inflation targets and spread hopes that it may pause the monetary tightening. 

Mortgage Loan types

According to the MBA, refinancing applications jumped 10% from the previous week but were 44% lower than the same week one year ago. Refis comprised 28% of the total applications last week, compared to 27.2% the prior week. Meanwhile, purchase apps increased 5% from one week earlier and were 32% lower than last year’s levels. 

“Lower rates from week to week have helped buyers in the market, but limited for-sale inventory remains a challenge for many homebuyers,” Kan said. “Refinance activity jumped to its highest levels since September 2022, although there is only a small pool of borrowers who can benefit from refinancing with rates at these levels.”

Regarding loan types, the adjustable-rate mortgage (ARM) share of mortgage apps decreased to 6.8% of total applications last week, the MBA data shows. 

The Federal Housing Administration share fell to 12.1% from 12.5% the week prior. The U.S. Department of Veteran Affairs loans share rose to 12.9% from 11.3% in the same period. And the U.S. Department of Agriculture loans decreased to 0.4% from 0.5% of the total applications.  

Source: housingwire.com

Apache is functioning normally

Those who’ve been experiencing Bridgerton withdrawals for the past year can finally breathe a sigh of relief. The Netflix franchise’s highly anticipated prequel Queen Charlotte: A Bridgerton Story is here to indulge your need for a period drama. And while the latest installment (starring newcomers India Ria Amarteifio and Corey Mylchreest) certainly meets expectations in delivering steamy romance and wild plot twists, there’s another component to the 19th-century story that will catch viewers’ eyes. Yes, the elaborate Regency-era decor serves as an unofficial character in the plot, adding drama and interest … not to mention inspiration for your next home refresh.

Now, to be clear, Regencycore has been having a moment in fashion and home for the past year, thanks to the success of Bridgerton’s first two seasons and other turn-of-the-century series like HBO Max’s The Gilded Age (which debuted in early 2022). In fact, following the release of the latter, vintage reseller 1stDibs reported a 130% increase in “gilded age” searches. And while the quiet luxury trend has taken design by storm in recent months, with the debut of Queen Charlotte, it’s safe to assume a fresh interest in the ornate textured designs of 19th century England will re-emerge.

Which begs the question: How does one make such a maximalist trend like this work in 2023? “While the Regency era style is undeniably beautiful, it can be challenging to seamlessly incorporate its elements into a modern home without sacrificing practicality and functionality,” says Zakhar Ivanisov, founder of Soul & Lane, a platform for home tips and advice. That said, like other over-the-top aesthetics, the key to embracing the Queen Charlotte look is “mixing [these] design elements with more contemporary pieces for a balanced and timeless look,” says Brad Smith, interior designer, and CEO of Omni Home Ideas.

Ahead, interior designers and decor experts outline these components to Regency decor so you can channel your own royal palace in a modern way this spring and summer. Queen Charlotte would be proud.

Rich, Regal Colors

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The first and possibly easiest step you can take with this throwback aesthetic is by adding some color to your living space. “Rich and vibrant palettes were popular during the Regency Era,” says Smith. “Consider using jewel tones like emerald green, deep sapphire blue, and burgundy, or opt for soft pastels like dusty rose and powder blue for a more subdued look.”

Ornate Detailing

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Another quick fix could be simply swapping in a few accents and accessories. “Regency Era design features intricate detailing in furniture and decorative accents,” says Smith. “Look for pieces with carved woodwork, gilded finishes, and elaborate patterns to add visual interest to your space.” Door or cabinet knobs, mirrors, and picture frames can easily add a touch of regal opulence.

Amber Dunford, design psychologist, and style director at Overstock.com seconds this tip, adding, “an opulent chandelier with elements like crystal, glass, or detailed filigree can bring an instantly elegant feel to a dining room or entryway space.”

Tapestry Walls

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Dunford explains that many English homes in the Regency era featured decorated walls with large-scale tapestries. “Try a tapestry-inspired wallpaper or wall hanging,” she recommends. “You may want to consider wallpaper with floral damask prints or opt for eye-catching patterns on a larger scale with scenes that depict nature or animals. There is also formality in symmetry that aligns nicely with this trend, so you can play that up with symmetrical artwork or wall panels or break the rules and go asymmetrical.”

Curved Shapes

LIAM DANIEL/NETFLIX

Intricately carved and rounded furniture was key in the Regency era. “Adding chairs with tufting or caning is another easy way to get that royal vibe in your home,” says Dunford. “Rounded shapes on sofas and chair backs also have a more regal feel and help spaces feel more comfortable, as curved shapes induce a more soothing energy for humans. “

Luxe Textures & Materials

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Never underestimate the power of a throw pillow or fresh drapes. “Opt for rich materials like silk, velvet, or brocade for your draperies, upholstery, or throw pillows,” says Ivanisov. “These textiles not only add a touch of opulence to your space but also contribute to a comfortable and inviting atmosphere. Consider choosing fabrics with intricate patterns or bold colors that reflect the grandeur of the Regency era, ensuring they complement your existing decor.”

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