FRYMAN ESTATES
COMMUNITY NEWS

Mortgage markets remained sensitive to rising energy prices this week, with the Consumer Price Index rising 0.5% in May and annual inflation hitting 4.2%, the highest since April 2023. Wage growth at 3.4% is lagging behind inflation, while housing costs continue to challenge the Fed's 2% inflation target. Mortgage rates ended the week slightly lower amid these dynamics.

This week, mortgage rates rose influenced by higher oil prices and robust labor market data. The May Employment report revealed a surprising 172,000 job gain, well above expectations, signaling economic strength but pressuring mortgage markets. Wage growth remains moderate, and unemployment held steady at 4.3%, impacting the Los Angeles housing market dynamics.

Mortgage rates declined this week amid hopeful reports of progress to end the Middle East conflict, despite rising inflation pressures. The core PCE price index rose to 3.3% annually in April, the highest since November 2023, while the personal savings rate dropped to 2.6%, the lowest since June 2022. Consumer confidence also weakened, reflecting concerns over prices and job availability.