Mortgage Blog - August 27, 2018

Last week’s economic readings included reports on sales of new and previously-owned homes, and weekly reports on mortgage rates and first-time jobless claims.

Sales of New and Pre-Owned Homes Falter in July

Home sales were lower in July, with new and pre-owned home sales falling short of projections and June sales. According to the Commerce Department, new homes sold at an annual rate of 627,000 sales as compared to 640,000 new home sales projected and a pace of 638,000 homes sold in June.

Downward revisions for previous months contributed to a lower sales pace reported in July; but the average price of a new home was $327,700.00 in July, which may indicate that home prices are tapping out. July prices dropped 1.70 percent from June but were 12.80 percent higher year-over-year.

Sales of previously-owned homes were also lower in July with an annual pace of 5.34 million homes sold as compared to the expected reading of 5.40 million sales and June’s reading of 5.38 million sales. July’s reading was the lowest in two and a half years and indicated that low inventories of available homes coupled with high home prices has sidelined would-be buyers who can’t find or afford homes they want to buy.

The National Association of Realtors ® reported that Inventories of homes were 0.70 percent lower in July after rising in June. Sales of pre-owned homes were 0.50 percent lower in July and were unchanged year-over-year.

Mortgage Rates, New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week; the rate for a 30-year fixed rate mortgage fell two basis points to 4.51 percent. Mortgage rates for a 15-year fixed rate mortgage averaged 3.98 percent and three basis points lower than the prior week.

Rates for 5/1 adjustable rate mortgages averaged 3.82 percent and were five basis points lower. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 210,000 claims filed as compared to an expected reading of 215,000 new claims and the prior week’s reading of 212,000 first-time jobless claims.

What‘s Ahead for the Week of August 27, 2018

This week’s scheduled economic reports include readings from Case-Shiller’s Home Price Index, pending home sales and inflation. Weekly readings on mortgage rates and new jobless claims will also be released.

Monday August 27, 2018
 
8:30 am Chicago National Activity Index July

Tuesday August 28, 2018
 
8:30 am Advance Trade in Goods July
9;00 am Case-Shiller Home Price Index June
10:00 am Consumer Confidence Index August

Wednesday August 29, 2018
 
8:30 am Gross Domestic Product Revision Q2
10:00 am Pending Home Sales July

Thursday August 30, 2018
 
8:30 am Weekly Jobless Claims 8/25
8:30 am Personal Income July
8:30 am Consumer Spending July
8:30 am Core Inflation July

Friday August 31, 2018

9:45 am Chicago PMI August
10:00 am Consumer Sentiment Index August

Buy? Refi? Prequalify.
Get the Insider Track on Interest Rates!

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.

---