Housing markets

Yields on the 10-year Treasury have been climbing because of the Moody's U.S. downgrade, the tax bill under debate in Congress and possible GSE reform.

The number of major housing markets with annual home price declines is the largest since late 2023, when average mortgage rates were above 7.5%.

The unexpected drop to the slowest pace in seven months was driven by ongoing affordability constraints and is a lackluster start to the Spring selling season.

Housing starts increased in April as a pickup in multifamily home construction more than offset a decline in single-family dwellings caused by elevated inventory.

A growing supply of unsold inventory applied downward pressure on prices, offering home buyers some relief, the Mortgage Bankers Association said.

The 30-year FRM remained under 7% for the 17th consecutive week, Freddie Mac said, but the 10-year Treasury at one point was up over 25 basis points.

Houses in 85% of the nation's metropolitan areas are considered overvalued, with more than half of those by 10% or above, Fitch Ratings found.

All of those surveyed by Wolters Kluwer for its May Blue Chip Economic Indicators report ruled out the possibility the Fed could raise short-term rates.

The national median single-family existing-home price grew 3.4% from a year ago to $402,300, an analysis found.

The broad rise in the share of underwater loans across the country this winter came as borrower distress grew and home prices pulled back in some regions.