Fannie Mae: 86% of consumers say it’s a bad time to buy a house

Happy Monday, folks. Today's newsletter is 644 words, a 2.5-minute read.

1. Newrez to lay off 317 employees in Colorado

Newrez is laying off 317 employees in Greenwood Village, Colorado, marking the second round of layoffs in the state this year. This follows Newrez's acquisition of Computershare Mortgage Services.

The layoffs affect various roles, including bankruptcy, default, valuations, customer care, and foreclosure positions.

Despite these cuts, Newrez, a top-five U.S. mortgage lender, saw significant growth in Q1 2024, originating $10.8 billion in mortgages. Parent company Rithm Capital reported a $261.6 million net income in Q1 2024. LINK

2. US adds 272K new jobs but unemployment rate rises

Employers added 272,000 jobs in May – much more than expected – as the unemployment rate also ticked up to reach 4% for the first time in over two years, the Labor Department reported on Friday.

The number compares to estimates for a gain of 190,000 jobs and is likely to complicate matters for the Federal Reserve as it meets next week to consider interest rates and inflation.

Average hourly earnings also rose, increasing 0.4% for the month and at an annual rate of 4.1%. That, too, will cause eyebrows to be raised at the Fed.

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3. More Nuggets

📈 Charted: States with the highest home price growth. (NAHB)

💰 Do we really need $1M in retirement savings? Not even close, one top economist says. (USA Today)

🏡 Homeowners sitting on a pile of cash with $17T in home equity. (CoreLogic)

⏫ Women's employment hits new record high. (Axios)

4. Mortgage credit availability increased in May

Mortgage credit availability increased in May, according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) based on data from ICE Mortgage Technology.

The MCAI increased by 0.1% to 94.1 in May. A decrease in the MCAI suggests tighter lending rules, whilst an increase in the index indicates looser credit. The index was benchmarked at 100 in March 2012.

• The Conventional MCAI climbed by 0.3%, while the Government MCAI fell by 0.1%. The Jumbo MCAI climbed by 0.1%, while the Conforming MCAI jumped by 0.5%.

5. Homebuying sentiment hits new survey low

The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 2.5 points in May to 69.4 as the component measuring consumer attitudes toward homebuying conditions fell markedly, reaching an all-time survey low.

• This month, only 14% of consumers indicated that it's a good time to buy a home, down from 20% last month, while the share believing it's a good time to sell fell from 67% to 64%.

Meanwhile, consumers continue to believe affordability will remain tight for the foreseeable future, as respondents believe that, on net, home prices and mortgage rates will go up over the next year.

☀️ Thanks for reading. See you on Wednesday!

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