Last Week’s economic readings included reports on inflation, mortgage rates, new jobless claims and consumer sentiment.
 
Inflation Slows in June
 
The Consumer Price Index for June inched down to 0.10 percent growth in June as compared to May’s reading of 0.20 percent.

Core inflation, which excludes volatile food and energy prices, rose 0.20 percent, which matched expectations and May’s reading of 0.20 percent. Year-over-year inflation rose by 2.90 percent.

This was the highest rate of growth in six years. Inflation increased by a year-over-year rate of 1.60 percent in the prior year.
 
While inflationary growth signals strengthening economic conditions, it can also cause challenges for consumers if inflation outpaces wage growth. In recent years rapidly, rising home prices have outstripped inflation and wage growth.
 
Mortgage Rates Rise as New Jobless Claims Fall
 
Freddie Mac reported higher mortgage rates last week for the first time since June. Rates for a 30-year fixed rate mortgage rose one basis point to an average of 4.53 percent; The average rate for a 15-year fixed rate mortgage rose three basis points to 4.02 percent.
 
The average rate for 5/1 adjustable rate mortgages rose 12 basis points to 3.86 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 6/1 adjustable rate mortgages. Analysts said that global economic trends caused the 10-year Treasury yield to rise as investors moved away from stocks.
 
First-time jobless claims fell by 18,000 claims to 214,000 new claims filed; this approached the lowest level of new jobless claims in 49 years. Analysts said that current low levels of new claims showed the healthiest jobs markets since the dot com boom in the 1990s.
 
Fewer first-time jobless claims suggested that more workers are confident about quitting their current jobs for new jobs. Improved consumer confidence in job security could mean that more consumers will be ready to buy homes.
 
Consumer sentiment also dropped in July according to the University of Michigan’s Consumer Sentiment Index.  Consumer sentiment fell to an index reading of 97.1 as compared to expectations of 98.9 and June’s reading of 98.2.  Concerns over recently imposed tariffs caused consumer sentiment to dip.

Buy? Refi? Prequalify.
 
What‘s Ahead for the Week of July 16, 2018
 
This week’s scheduled economic reports include readings on retail sales, the National Association of Home Builders Housing Market Index 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 July 16, 2018

8:30 am               Retail Sales June             
8:30 am               Retail Sales Ex-Auto June             
8:30 am               Empire State Index July
10:00 am             Business Inventories May

Tuesday July 17, 2018

9:15 am               Industrial Production June
9:15 am               Capacity Utilization June
10:00 am             Jerome Powell Testimony                                                          
10:00 am             Home Builders' Index July

Wednesday July 18, 2018

8:30 am               Housing Starts June
8:30 am               Building permits June
10:00 am             Jerome Powell Testimony                                                          
2:00 pm               Beige Book      
                                                 
Thursday July 19, 2018

8:30 am               Weekly Jobless Claims
8:30 am               Philly Fed July
9:00 am               Randal Quarles Speaks                                                 
10:00 am             Leading Economic Indicators June

Friday July 20, 2019

8:20 am               James Bullard Speaks

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.

Last week’s economic reports included readings from Case-Shiller housing market indices and data released on new and pending home sales.

Weekly releases on mortgage rates and first-time unemployment claims along with the Consumer Sentiment Index for June were also posted.
 
Case-Shiller Reports Rapid Home Price Growth in April
 
April home prices ticked downward by one-tenth percent for the National Home Price Index, which reported 6.40 percent growth year-over-year.

Case-Shiller’s 20-City Home Price Index also dipped by one-tenth percent to 6.60 percent year-over-year. Analysts note that home prices continue to outpace wage growth and inflation, which limits affordability for many prospective home buyers.
 
Seattle, Washington held the top spot on the 20-City Home Price Index with year-over-year home price growth of 13.10 percent; Las Vegas, Nevada followed with year-over-year home price growth of 12.70 percent and San Francisco, California reported home price growth of 10.90 percent year-over-year. New York, New York was the only metro area to report negative home price growth. Analysts said recent tax law changes and a glut of new apartments impacted home prices.
 
New Home Sales Rise as Pending Home Sales Fall
 
Sales of new homes rose in May to a seasonally-adjusted annual level of 689,000 sales. Analysts expected 668,000 sales based on April’s downwardly-revised reading of 646,000 new homes sold. Year-to-date, sales of new homes were 8.80 percent higher than for the same period in 2017.
 
Rapid home price growth has been driven by high demand and limited inventories of homes for sale. Supplies of new homes dipped from a 5.40-month supply in April to a 5.20-month supply of homes for sale. Real estate pros consider a six-month supply of homes an average inventory.
 
Pending home sales dipped in May by -0.50 percent,  as compared to April’s reading of -1.30 percent. Low supplies of available homes have sidelined buyers who haven’t found homes that they want or can afford. High demand has created bidding wars and cash buyers in some markets have sidelined moderate-income buyers and those who need financing to purchase homes.
 
Mortgage Rates Mixed, New Jobless Claims Rise
 
Freddie Mac reported lower average mortgage rates last week. Rates for a 30-year fixed rate mortgage fell by two basis points to 4.55 percent. Rates for a 15-year fixed rate mortgage averaged 4.04 percent and were unchanged from the prior week.
 
The average rate for a 5/1 adjustable rate mortgage was four basis points higher at 3.87 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.
 
New jobless claims rose to 227,000 first-time claims filed from the prior week’s reading of 218,000 claims filed. Analysts expected 220,000 initial jobless claims.
 
Consumer sentiment fell to an index reading of 98.20 in June as compared to May’s reading of 99.30. according to the University of Michigan.

Buy? Refi? Prequalify.
 
What‘s Ahead for the Week of July 2, 2018
 
This week’s scheduled economic news includes readings on construction spending and minutes of the most recent meeting of the Fed’s Federal Open Market Committee, Labor sector readings on Non-Farm payrolls, ADP payrolls and national unemployment will also be released.
 
Weekly reports on mortgage rates and new jobless claims will be released on schedule.  U.S. Financial Markets will be closed on Wednesday in observance of Independence Day.

Monday July 2, 2018
 
9:45 am Markit Manufacturing PMI (Final) June
10:00 am ISM Manufacturing Index June 
10:00 am Construction Spending May

Tuesday July 3, 2018

Varies Motor Vehicle Sales June
10:00 am Factory Orders May
 
Wednesday July 4, 2018

Independence Day       

Thursday July 5, 2018
 
8:15 am ADP Employment June
8:30 am Weekly Jobless Claims
9:45 am Markit Services PMI (Final) June
10:00 am ISM Nonmanufacturing Index June
2:00 pm FOMC Minutes        
 
Friday July 6, 2018
 
8:30 am Nonfarm Payrolls June
8:30 am Unemployment Rate June
8:30 am Average Hourly Earnings June
8:30 am Foreign Trade in Goods, Services 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.