Mortgage Blog - May 29, 20185/29/2018 Last week’s economic reports included readings on sales of new and previously-owned homes along with weekly readings on mortgage rates and new jobless claims. Home Sales Lower in April Sales of new and previously-owned homes were lower in April. The Commerce Department reported sales of new homes at a seasonally-adjusted annual rate of 662,000 sales. New home sales were 1.50 percent lower than for March, but were 11.60 percent higher year-over-year. Analysts expected new home sales to rise to 682,000 sales based on the March reading of 672,000 new homes sold. Sales of new homes are calculated based on a small sample of sales and are typically subject to adjustment. Year-to date sales were 8.40 percent higher year-over-year. New home sales were downwardly revised for the past three months, which could indicate a slowing in the market. Higher interest rates and rising home prices may be taking a toll on buyer enthusiasm. Fewer buyers caused the inventory of homes for sale to increase to a 5.40 month supply. Real estate pros typically consider a six-month supply of available homes a normal inventory of homes for sale. Sales of previously owned homes were also lower in April; the National Association of Realtors® reported seasonally-adjusted annual sales of 5.46 million homes as compared to expected sales of 5.50 million and March sales pace of 5.60 million sales of previously-owned homes. While fewer sales can relieve demand and ease rising home prices, it appeared that potential buyers are waiting for more options. Sales of pre-owned homes were 2.50 percent lower than for March and were 1.40 percent lower year-over-year; this was the second consecutive month for a lower year-over-year sales reading. The inventory crunch of pre-owned homes for sale has reduced the average sales period to decrease to 26 days. Mortgage Rates Rise, Sideline Buyers and Sellers as New Jobless Claims Rise Freddie Mac reported the highest average mortgage rates in seven years. 30-year mortgage rates averaged 4.66 percent; rates for a 15-year fixed rate mortgage averaged 4.15 percent and rates for 5/1 adjustable rate mortgages averaged 3.87 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. Mortgage rates have not risen so fast at the beginning of the year for 40 years. Analysts at Freddie Mac said that home sellers, as well as buyers, may be sidelined as inventories of homes shrink and mortgage rates rise. This could mean that sellers as well as buyers will wait until market conditions and mortgage rates ease. First-time home buyers accounted for 33 percent of existing home sales; this was lower than the average of 40 percent. First-time buyers are important to real estate markets as their purchases of pre-owned homes enable homeowners to buy their next homes. New jobless claims rose to 234,000 claims filed as compared to expectations of 219,000 new claims filed. 223,000 new claims were filed the prior week. Buy? Refi? Prequalify. What‘s Ahead for the Week of May 29, 2018 This week’s scheduled economic releases include readings from Case-Shiller on home prices, construction spending and pending home sales. ADP and Non-Farm payrolls and the national unemployment rate will also be released. Tuesday May 29, 2018 9:00 am Case-Shiller Home Price Index 10:00 am Consumer Confidence Index May Wednesday May 30, 2018 8:15 am ADP Employment May 8:30 am Gross Domestic Product Revision 1Q 8:30 am Advance Trade In Goods April 2:00 pm Beige Book Thursday May 31, 2018 8.30 am Weekly Jobless Claims 8:30 am Personal Income April 8:30 am Consumer Spending April 8:30 am Core Inflation April 9:45 am Chicago PMI May 10:00 am Pending Home Sales April Friday June 1, 2018 8:30 am Nonfarm Payrolls May 8:30 am Unemployment Rate May 8:30 am Average Hourly Earnings May 9:45 am Markit Manufacturing PMI May 10:00 am ISM Manufacturing Index May 10:00 am Construction Spending April Varies Motor Vehicle Sales May 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. Mortgage Blog - May 21, 20185/21/2018 Last week’s economic releases included the National Association of Home Builders Housing Market Index for May, Commerce Department reports on housing starts and building permits issued. Weekly readings on mortgage rates and first-time jobless claims were also released. Home Builder Confidence Rises in May According to the National Association of Home Builders, home builders surveyed indicated higher confidence in housing market conditions for May. April’s reading was revised downward to an index reading of 68; analysts expected a reading of 69. May’s home builder confidence reading was 70. Any reading over 50 indicates that more builders consider housing market conditions to positive. Three-month rolling readings for regions showed mixed results in May. Northeast and Western regions were unchanged with index readings of 55 and 76 respectively. Midwestern and Southern regions posted a one-point drop with respective index readings of 65 and 92. The NAHB cited high lumber prices as a concern and said that rising materials costs were impacting builders’ ability to produce affordable housing for first-time buyers. Both housing starts and building permits issued were lower in April than for March; The Commerce Department reported1.287 million housing starts in April as compared to 1.336 million starts in March. Housing starts are calculated on a seasonally-adjusted annual basis. Although housing starts were 3.70 percent lower in April, analysts said there was little concern as the rate of housing starts remained near the highest levels in 11 years. April’s decline in housing starts was attributed to volatile multi-unit projects; construction rates for single-family homes were little changed. The South reported an increase in housing starts as all other regions reported fewer housing starts. Builders said that labor shortages continue to impact construction rates. Analysts expected construction rates to expand throughout 2018 as demand for homes rises. Building permits issued fell in April to a seasonally-adjusted annual rate of 1.352 million from the March reading of 1.377 million permits issued. Mortgage Rates, New Jobless Claims Mortgage rates rose to their highest level in seven years. Rates for a 30-year fixed rate mortgage were six basis points higher and averaged 4.61 percent. The average rate for a 15-year fixed rate mortgage was seven basis points higher at 4.08 percent. Mortgage rates for a 5/1 adjustable rate mortgage averaged five basis points higher at 3.82 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. First-time jobless claims rose to 222,000 new claims last week as compared to 211,000 new claims filed the prior week. Analysts expected 215,000 new claims filed. Buy? Refi? Prequalify. What‘s Ahead for the Week of May 21, 2018 This week’s economic releases include readings on sales of new and previously-owned homes and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released. Monday May 21, 2018 8:30 am Chicago National Activity Index Tuesday May 22, 2018 None Scheduled Wednesday May 23, 2018 9:45 am Markit Manufacturing PMI 9:45 am Markit Services PMI 10:00 am New Home Sales April 2:00 pm FOMC Minutes Thursday May 24, 2018 8.30 am Weekly Jobless Claims 10 am Existing Home Sales April Friday May 25, 2018 8:30 am Durable Goods Orders April 8:30 am Core Capital Equipment Orders April 10 am Consumer Sentiment Index May 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. Archives
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