The article discusses the recent trends in the housing market as the spring purchase season progresses. There is a slight increase in pending single-family home sales alongside a growth in unsold inventory. Analysts from Altos and HousingWire are optimistic about home sales gains compared to 2024. Although mortgage applications dipped last week, they remain higher than last year. The current spread between Treasury yields and mortgage rates is noted to be elevated, influenced by political tensions between President Trump and Federal Reserve Chair Powell, which has led to fluctuating mortgage rates and investor concerns.
The upward movement serves as a bucket of cold water for a housing market that has had a relatively healthy level of activity at the start of the spring purchase season.
Mohtashami noted that the spread between 10-year Treasury yields and 30-year mortgage rates which currently sits at 2.45% remains elevated from the historic averages of 1.6% to 1.8%.
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