Last week’s economic news included readings on consumer credit, inflation and consumer sentiment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Fed Reports Consumer Credit Jumps in July

The Federal Reserve reported that consumer credit rose from $9 billion in June to $17 billion in July.

Analysts said a majority of consumer credit was issued for education loans and auto loans. June’s reading was revised downward to $8.50 billion from the original reading of $10.2 billion.

Credit card debt increased by 1.50 percent in July after declining by – 1.40 percent in June. Non-revolving consumer debt rose by 6.40 percent in July after growing 4.0 percent in June. July’s reading was the largest increase in eight months. The Fed’s Consumer Credit report does not include mortgage loans.

Inflation increased by 0.20 percent in August, which fell short of analyst expectations of 0.30 percent growth. Core inflation, which excludes volatile food and fuel sectors, rose by -0.10 percent and was lower than the expected reading of 0.20 percent growth. July readings for inflation and core inflation were 0.20 percent.

Mortgage Rates and Consumer Sentiment Rise as New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates for the third consecutive week. Rates for a 30-year fixed rate mortgage rose six basis points to an average of 4.60 percent; rates for 15-year fixed rate mortgages averaged seven basis points higher at 4.06 percent and mortgage rates for 5/1 adjustable rate mortgages averaged 3.93 percent and were unchanged from the prior week. Discount rates were reported at 0.50 percent for fixed-rate loans and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell last week to 204,000 claims filed against expectations of 210,000 new claims filed and the prior week’s reading of 205,000 first-time jobless claims filed.

Consumer sentiment rose in September. The University of Michigan reported an index reading of 100.8, which surpassed the expected index reading of 97.0 and the August reading of 96.2.

Buy? Refi? Prequalify.

What‘s Ahead for the week of September 17, 2018

This week’s scheduled releases include readings from the National Association of Home Builders, The National Association of Realtors® on sales of pre-owned homes and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims will also be released.

Monday September 17, 21018

8:30 am Empire State Index September

Tuesday September 18, 21018

10:00 am Home Builders' Index September

Wednesday September 19, 21018

8:30 am Housing Starts August
8:30 am Building Permits August
8:30 am Current Account Deficit Q2

Thursday September 20, 21018

8:30 am Weekly Jobless Claims 9/15
8:30 am Philly Fed Index September
10:00 am Existing Home Sales August
10:00 am Leading Economic Indicators August

Friday September 21, 21018

9:45 am Markit Manufacturing PMI (flash) September
9:45 am Markit Services PMI (flash) September

Buy? Refi? Prequalify.

Cheers!

Scott Synovic
AnnieMac Home Mortgage
Colorado's Mortgage Expert
www.coloradosmortgageexpert.com
303.668.3350 Direct

NMLS: 253799 / AnnieMac Home Mortgage NMLS: 338923
Regulated by the Division of Real Estate

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial
services and other professionals only. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.

Last week’s economic news included readings on construction spending, along with public and private-sector jobs growth. The national unemployment rate, weekly reports on mortgage rates and new jobless claims were also released.

Construction Spending Rises in July

July construction spending ticked up to 0.10 percent from June’s negative reading of -0.80 percent. Year-over-year, construction spending was 5.80 percent higher than for July 2017.Public-sector construction accounted for most of the growth and increased by 0.70 percent as private-sector construction projects decreased by -0.10 percent.

Month-to-month spending readings can be volatile, but analysts said that construction spending for the first seven months of 2018 were up 5.20 percent from the same period in 2017. July’s slower spending rate suggested that construction projects are slowing.

Given ongoing shortages of available homes, this is not good news for housing markets. High demand has driven home prices up, but affordability has become an issue in areas where home prices outpace inflation and wage growth.

Mortgage Rates Rise as New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week; the rate for a 30-year fixed rate mortgage rose two basis points to 4.54 percent. Rates for 15-year fixed rate mortgages averaged 3.99 percent and were two basis points higher.

Rates for a 5/1 adjustable rate mortgage averaged eight basis points higher at 3.93 percent. Analysts said that home prices continued to rise as demand for homes softened Higher home prices and mortgage rates sidelined first-time and moderate-income home buyers as slim inventories of homes for sale sidelined buyers who could not find homes they wanted to buy.

First-time jobless claims were lower last week with 213,000 claims filed. Analysts expected 212,000 new claims to be filed based on the prior week’s reading of 213,000 first-time filings. The national unemployment rate held steady at 3.90 percent.

ADP payrolls dropped to 163,000 private-sector jobs in August as compared to 217,000 private-sector jobs added in July. The Commerce Department’s Non-Farm Payrolls reported 201,000 public and private-sector jobs added in August, which fell short of the expected reading of 212,000 jobs added and the prior month’s reading of 213,000 jobs added.

Buy? Refi? Prequalify.

What‘s Ahead for the week of September 10, 2018

This week’s economic readings include reports on inflation, retail sales and the Federal Reserve’s Beige Book report. Weekly readings on mortgage rates and new jobless claims will also be released.

Monday September 10, 2018

11:00 am Survey of Consumer Expectations August
12:00 pm Raphael Bostic Speaks
3:00 pm Consumer Credit July

Tuesday September 11, 2018

6:00 am NFIB Small-Business Index August
10:00 am Job Openings July
10:00 am Wholesale Inventories July
2:20 pm Neel Kashkari Speaks
 
Wednesday September 12, 2018

8:30 am Producer Price Index August
9:40 am James Bullard Speaks
2:00 pm Beige Book
 
Thursday September 13, 2018

8:30 am Weekly Jobless Claims 9/8
8:30 am Consumer Price Index August
8:30 am Core CPI August
1:15 pm Raphael Bostic Speaks
2:00 pm Federal Budget August

Friday September 14, 2018

8:30 am Retail Sales August
8:30 am Retail Sales Ex-Autos August
9:00 am Charles Evans Speaks
9:15 am Industrial Production August
9:15 am Capacity Utilization August
10:00 am Consumer Sentiment September
10:00 am Business iInventories July
10:00 am Eric Rosengren Publishes Paper
 
Buy? Refi? Prequalify.

Cheers!

Scott Synovic
AnnieMac Home Mortgage
Colorado's Mortgage Expert
www.coloradosmortgageexpert.com
303.668.3350 Direct

NMLS: 253799 / AnnieMac Home Mortgage NMLS: 338923
Regulated by the Division of Real Estate

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial
services and other professionals only. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.

Last week’s economic releases included readings from Case-Shiller on home prices, pending home sales and consumer sentiment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Case-Shiller: Home Price Growth, Pending Home Sales Dip

Home price growth slowed in June according to Case-Shiller’s national home price index. Home prices rose 0.30 percent from May and were 6.30 percent year-over-year as compared as compared to 6.40 percent. In May. Analysts have predicted stabilizing home prices for months and June’s reading indicated that home prices may slow after surpassing inflation and wage growth in recent times.

The 20-City Home Price Index rose 0.10 percent in June and 6.30 percent year-over-year in June; Las Vegas, Nevada home prices toppled Seattle, Washington’s hold on highest home price appreciation with a reading of 1.40 percent in June and 13.00 percent year-over-year. Seattle home prices grew by 0.70 percent and 12.80 percent year-over-year. San Francisco, California home prices grew by 0.50 percent in June and 10.78 percent year-over-year.

Pending home sales, which indicate future home sales, were -0.70 percent lower in July; as compared to 1.00 percent growth in June. Lower home sales are typically expected as peak buying season ends, but short supplies of homes and high demand, which has driven home prices beyond affordability for first-time and moderate-income home buyers.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported a higher average rate for 30-year fixed rate mortgages, which rose one basis point to 4.52 percent; rates for a 15-year fixed rate mortgage averaged 3.97npercent and were one basis point lower.  Rates for a 5/1 adjustable rate mortgage averaged 3.85 percent and were three basis points higher on average.

First-time jobless claims also rose last week with 213,000 new claims filed as compared to expectations of 212,000 new claims and the prior week’s reading of 210,000 new claims filed. The University of Michigan reported a lower consumer confidence reading of 96.2 for August as compared to July’s reading of 97.9. Analysts expected a reading of 95.4 for August.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of September 4, 2018

This week’s scheduled economic releases include readings on construction spending, labor reports on public and private sector job growth and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims will also be released.

Monday, September 3, 2018

Labor Day Holiday - None scheduled             
                                                    
Tuesday, September 2018

9:45 am               Markit Manufacturing PMI
10:00 am             ISM Manufacturing Index            
10:00 am             Construction Spending July         

Varies Motor Vehicle Sales          

Wednesday, September 5, 2018

8:30 am                Trade Deficit August
9:20 am                James Bullard Speaks                                                      
4:00 pm                Neel Kashkari Speaks                                                       
5:30 pm                Raphael Bostic Speaks   
                                                 
Thursday, September 6, 2018

8:15 am                ADP Employment August
8:30 am                Weekly Jobless Claims
8:30 am                Productivity
8:30 am                Unit Labor Costs
9:45 am                Markit Services PMI August
10:00 am             ISM Nonmanufacturing Index August
10:00 am             Factory Orders July
10:00 am             John Williams Speaks      
                                                
Friday September 7, 2018

8:30 am                Nonfarm Payrolls August
8:30 am                Unemployment Rate August
8:30 am                Average Hourly Earnings August
1:20 pm                Robert Kaplan Speaks       

Buy? Refi? Prequalify.

Cheers!

Scott Synovic
AnnieMac Home Mortgage
Colorado's Mortgage Expert
www.coloradosmortgageexpert.com
303.668.3350 Direct

NMLS: 253799 / AnnieMac Home Mortgage NMLS: 338923
Regulated by the Division of Real Estate

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial
services and other professionals only. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.