Bond Market Update

Data Recon

• Existing home sales decreased 2.4% month-over-month in April to a seasonally adjusted annual rate of 5.61 million (Briefing.com consensus 5.65 million) versus a downwardly revised 5.75 million (from 5.77 million) in March. Total sales in April were down 5.9% from a year ago.
• The key takeaway from the report is that the supply of available homes for sale remains extremely tight, yet higher mortgage rates and home price inflation are contributing to a slowdown in buyer demand rooted in affordability pressures that are expected to persist.
  • The median existing home price for all housing types increased 14.8% year-over-year to $391,200, representing the 122nd consecutive month of year-over-year gains and longest-running streak on record. The median price for single-family homes increased 14.8% yr/yr to $397,600.
  • Existing home sales across regions: Northeast (+1.5%); Midwest (+3.1%); South (-4.6%); and West (-5.8%).
  • Median home prices by region year-over-year: Northeast (+8.1% to $412,100); Midwest (+8.7% to $282,000); South (+22.2% to $352,100); and West (+4.3% to $523,000).
  • The inventory of homes for sale at the end of April was up 10.8% month-over-month at 1,030,000 units, but down 10.4% from a year ago. Unsold inventory increased to a 2.2-month supply at the current sales pace versus 1.9 months in March, but it is still well below the 6.0-months' supply typically associated with a more balanced market.
  • First-time buyers accounted for 28% of sales in April, down from 30% in March and 31% in April 2021.
  • All-cash sales comprised 26% of transactions in April, down from 28% in March and up from 25% in April 2021.
  • 88% of homes sold in April were on the market for less than a month, with properties typically remaining on the market for 17 days, equal to the number of days in March and April 2021.
• Yield Check:
  • 2-yr: -6 bps to 2.62%
  • 3-yr: -3 bps to 2.79%
  • 5-yr: -5 bps to 2.84%
  • 10-yr: -5 bps to 2.83%
  • 30-yr: -4 bps to 3.03%