Last week’s economic reporting included readings on sales of new and pre-owned homes; weekly reports on mortgage rates and new jobless claims were also released along with a report on consumer sentiment.

Sales of New Homes Hit 16-Month High

The Commerce Department reported that deep discounts offered by home builders boosted sales of new single-family homes to 692,000 sales on a seasonally-adjusted annual basis.

March sales exceeded February’s reading by 4.50 percent and exceeded the expected sales pace of 656,000 sales.


The average price of new single family homes fell to $302,700 in March; this was 9.70 percent lower year-over-year.

Real estate pros reported higher inventory of new homes for sale with a six-month supply of homes for sale in March. A six-month supply of available homes indicates that housing markets were evenly balanced between homes for sale and prospective buyers.

Previously-owned homes sold at a seasonally-adjusted annual pace of 5.21 million sales in March. The National Association of Realtors® said that sales of pre-owned homes were 5.90 percent lower than the sales pace of 5.48 million pre owned homes posted for February and that March sales missed expectations of 5.35 million sales.

Sales were likely impacted by higher average sales price for pre-owned homes; the average selling price for pre-owned homes was $259,400, which was 3.80 percent higher year-over-year. Higher home prices challenge first-time and moderate income home buyers; this could explain the slower sales pace for pre-owned homes in March.

Mortgage Rates and New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week. Rates for 30-year fixed rate mortgages averaged 4.20 percent and were three basis points higher than for the prior week. Rates for 15-year fixed rate mortgages averaged two basis points higher at 3.64 percent; Rates for 5/1 adjustable rate mortgages fell one basis point and averaged 3.77 percent. Discount points for fixed rate mortgages averaged 0.50 percent and 0.40 percent for 5/1 adjustable rate mortgages.
First-time jobless claims jumped to 230,000 new claims filed as compared to the prior week’s reading of 193,000 new claims filed. Analysts said that more first-time claims were likely related to the Easter holiday and spring breaks.

According to the Consumer Sentiment Index for April, consumer sentiment rose to an index reading of 97.20 percent as compared to an expected reading of 97.0 and March’s reading of 96.9.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of April 29, 2019

This week’s scheduled economic news includes readings from Case-Shiller, and Commerce Department readings on construction spending and pending home sales. The Federal Open Market Committee of the Federal Reserve will issue its post-meeting statement and Fed Chair Jerome Powell will give a press conference. ADP and Non-Farm Payrolls reports will be released along with the national unemployment rate.

Cheers!

Scott Synovic
AnnieMac Home Mortgage
Colorado's Mortgage Expert
www.coloradosmortgageexpert.com
#coloradosmortgageexpert
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 home builder confidence in housing market conditions and Commerce Department reports on housing starts and building permits issued. Weekly readings on mortgage ratees and first-time jobless claims were also released.

NAHB Housing Market Index: Builder Confidence Rises One Point in April

Home Builder Confidence readings posted by the National Association of Home Builders held steady for April and rose one point overall. Component readings for the NAHB Housing Market Index were mixed; builder confidence in current housing market conditions rose one point to an index reading of 69, but builder confidence in housing market conditions in the next six months fell one point to 62.

Home builder confidence in potential buyer traffic rose three points to 47. NAHB Housing Market index readings above 50 indicate that most builders view market conditions as positive, but the reading for buyer traffic seldom rises above 50.

Housing Starts and Building Permits Issued Fall Short of Expectations in March

Commerce Department reports on housing starts and building permits issued in March were lower than in February and fell short of analyst expectations. Housing starts were reported at a seasonally adjusted annual pace of 1.139 million starts. Analysts expected housing starts at an annual rate of 1,225 billion starts based on February’s reading of 1.142 million starts.

Builders continued to experience headwinds including higher materials costs, shortages of buildable lots and a lack of skilled labor. Analysts cited disparities between new housing developments, which tend to favor luxury homes and the need for affordable housing.

Exclusionary zoning and neighborhood politics can block construction of affordable housing in desirable areas; legal and zoning constraints prevent builders from producing enough affordable homes to meet demand. Housing starts year-to-date were 9.70 percent lower than for the same period in 2018.

Fewer building permits were issued in March than in February. 1.269 million permits were issued on a seasonally adjusted annual basis as compared to expectations of 1.300 million permits issued and February’s reading of 1.291 million permits issued.

Mortgage Rates Rise as New Jobless Claims Fall

Mortgage rates were higher last week as average rates for fixed rate mortgages rose. 30-year mortgage rates averaged five basis points higher at 4.17 percent. Rates for 15-year fixed rate mortgages averaged two basis points higher at 3.62 percent.  

Mortgage rates for 5/1 adjustable rate mortgages averaged two basis points lower at 3.78 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent 5/1 adjustable rate mortgages.

First-time jobless claims fell by 5000 new claims to 192,000 initial claims; this was significantly lower than 204,000 new claims expected.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of April 22, 2019

This week’s scheduled economic news includes reports on sales of new and pre-owned homes and consumer sentiment. Weekly readings on mortgage rates and initial jobless claims will also be released.

Cheers!

Scott Synovic
AnnieMac Home Mortgage
Colorado's Mortgage Expert
www.coloradosmortgageexpert.com
#coloradosmortgageexpert
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 and inflation; labor sector reports on the national unemployment rate, public and private sector employment were also released. Weekly readings on mortgage rates and new jobless claims were also released.


Construction Spending Rises, Retail Sales Slip

Construction spending expanded by one percent in February according to the Commerce Department spending was one percent higher month-to-month; analysts expected a negative reading of -0.10 percent. February saw a revised gain of 2.50 percent growth in construction spending.

Construction spending grew 1.10 percent year-over-year; by comparison, 2016 construction spending reached 10 percent year-over-year. High demand for homes and lower mortgage rates could compel more construction spending as the peak home-buying season starts.

Retail sales slowed in February, but January retail readings were strong. Sales dipped -0.20 percent as compared to 0.30 percent growth expected and January’s reading of 0.70 percent. Retail sales excluding automotive sales fell to a negative reading of -0.40 percent in February as compared to expected sales growth of 0.40 percent and January’s reading of 1.40 percent growth.

Mortgage Rates Mixed, New Jobless Claims

30-year fixed mortgage rates rose two basis points on average to 4.08 percent; rates for 15-year fixed rate mortgages averaged one basis point lower at 3.56 percent and rates for 5/1 adjustable rate mortgages were nine basis points lower and averaged 3.66 percent.

Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate and 5/1 adjustable rate mortgages.  Would-be home buyers are expected to join active buyers as lower rates hold steady and warmer weather arrives.

First-time jobless claims fell last week with 202,000 initial claims filed. Analysts expected 216,000 first-time jobless claims based on 212, 000 new jobless claims filed the prior week.

Buy? Refi? Prequalify.

Jobs Data Varied. Unemployment Holds Steady

ADP reported 129,000 private-sector jobs added in March as compared to 197,000 jobs added in February and an expected reading of 165,000 jobs added. Loss of manufacturing jobs caused private-sector jobs growth to fall to its lowest reading in 18 months.

Government readings for public and private jobs growth was higher in March with 196,000 jobs added; this was significantly higher than February’s slim reading of 33,000 jobs added. The national unemployment rate was unchanged at 3.80 percent, which matched expectations.

What‘s Ahead for the Week of April 8, 2019

This week’s scheduled economic news includes readings on inflation, minutes from the most recent FOMC meeting and consumer sentiment. Weekly readings on mortgage rates and initial jobless claims will also be released.

Cheers!

Scott Synovic
AnnieMac Home Mortgage
Colorado's Mortgage Expert
www.coloradosmortgageexpert.com
#coloradosmortgageexpert
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 reports included readings from Case-Shiller on home price growth, Commerce Department readings on housing starts and building permits issued. The Conference Board issued its monthly reading on consumer confidence. Pending home sales and weekly reports on mortgage rates and first-time jobless claims were also released.

Case-Shiller Home Price Indices: Price Growth Slows in January


S&P Case-Shiller Indices reported the slowest rate of home price growth in six years. January readings suggested that home price growth slowed due to easing demand. Affordability concerns sidelined buyers; participation of first-time home buyers remained lower than average.

Case-Shiller’s 20-City Home Price Index charted its third month-to-month decline in home price growth; the National Home Price Index fell to 4.30 percent during the three months ending in January as compared to 4.60 percent growth for the three month period ending in October 2018.

Las Vegas, Nevada led the 20-City Home Price Index with year-over-year home price growth of 10.50 percent. Phoenix, Arizona held second place with 7.50 percent home price growth. Third place was tied by Minneapolis, Minnesota, Charlotte, North Caroline and Tampa, Florida with 5.10 percent growth. This tie suggested that home prices were leveling out, and west coast cities were notably absent from the top three spots after home prices rocketed to historic levels in recent years.

Housing Starts, Building Permits Issued

Commerce Department readings for housing starts and building permits issued were lower in February. Housing starts posted on a seasonally-adjusted annual rate of 1.162 million starts. Analysts expected 1.201 million starts based on February’s reading of 1.273 million housing starts. Single-family housing starts fell 17 percent in March.

Regional readings for housing starts were mixed: The Northeast reading was 30 percent lower; the Southern region posted 7 percent fewer starts in February and housing starts in the West fell 19 percent. The Midwest posted a positive year-over-year growth rate of 27 percent for housing starts.

Fewer building permits were issued in February with 1.295 million permits issued as compared to February’s reading of 1.317 million permits issued. While some of the slowdowns in housing starts and building permits were likely related to winter weather, real estate and mortgage lending pros continued to count on home builders to provide more homes to ease housing shortages in many cities and metro areas.

Pending home sales were lower in February; the National Association of Realtors® said pending sales were 1.00 percent lower in February, and those pending sales had declined nearly 5.00 percent year-over-year. Pending sales represent home sales for which purchase offers have been signed, but not completed.

Lawrence Yun, the chief economist for the National Association of Realtors®, said a shortage of available homes in the West coupled with rapidly rising home prices contributed to lower pending sales numbers.

Mortgage Rates, New Jobless Claims Fall

Average mortgage rates fell to their lowest readings in ten years last week. Freddie Mac reported that rates for a 30-year fixed rate mortgage averaged 22 basis points lower at 4.06 percent; the average rate for 15-year fixed rate mortgages fell 14 basis points to 3.57 percent. Rates for 5/1 adjustable rate mortgages averaged 3.75 percent and were 9 basis points lower.

Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. Lower mortgage rates are expected to prevail as the Fed announced its decision not to raise the target federal funds rate range in 2019.

Consumer confidence fell to an index reading of 124.1 in February as compared to 131.4 in January. Analysts expected an index reading of 133, which indicates that consumers have less confidence in current economic conditions.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of April 1, 2019

This week’s scheduled economic news includes readings on retail sales, construction spending and labor sector reports on jobs and national unemployment. Weekly reports on mortgage rates and first-time jobless claims will also be released.

Cheers!

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