 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.  Last week’s economic reports included readings from the National Association of Home Builders and Commerce Department releases on Housing Starts and Building Permits issued. Weekly readings on mortgage rates and first-time jobless claims were released, along with a monthly report on consumer sentiment.
NAHB: Home Builder Housing Market Index Drops 1 Point August’s reading for the National Association of Home Builders Housing Market Index dropped one point to 67. This was the lowest reading for home builder confidence in housing market conditions in 11 months. Analysts said that trade wars are causing concern among builders due to higher costs for building materials. Higher costs will be passed on to home buyers, many of whom are already challenged by rising home prices and strict mortgage approval requirements. Housing starts reached 1.168 million on an annual basis in July; analysts expected 1.270 million starts based on June’s reading of 1.158 million starts. Building permits issued increased in Jul with 1.311 million permits issued on an annual basis. June’s reading was 1.292 permits issued. Lower numbers of available new homes were a potential problem for housing sector, but demand remains high. Mortgage Rates and New Jobless Claims Lower Freddie Mac reported lower average mortgage rates last week; the rate for 30-year fixed rate mortgages fell six basis points to 4.53 percent. The average rate for a 15-year fixed rate mortgages fell four basis points to 4.01 percent and rates for a 5/1 adjustable rate mortgage averaged three basis points lower at 3.87 percent. First-time jobless claims fell to 212,000 new claims as compared to expectations of 215,000 new claims and the prior week’s reading of 214,000 new clams filed. The latest reading approached the level of new jobless claims seen as a post-recession low First-time unemployment claims indicate levels of lay-offs and are viewed by analysts as an indicator of job market performance. The University of Michigan reported that consumer sentiment reached its lowest reading since 2006. Analysts said that consumer concerns were concentrated among the bottom third of income ranges surveyed. Rising consumer costs caused August’s consumer confidence index to slip to 95.3 as compared to an expected index reading of 98.5. July’s consumer sentiment reading was 97.9. Buy? Refi? Prequalify. What‘s Ahead This week’s scheduled economic reports include readings on new and pre-owned home sales and minutes from the most recent meeting of the Fed’s Federal Open Market Committee. Weekly readings on mortgage rates and new jobless claims will also be released. Monday August 20, 2018 None Scheduled Tuesday August 21, 2018 None Scheduled Wednesday August 22, 2018 10:00 am Existing Home Sales July 2:00 pm FOMC Minutes Thursday August 23, 2018 8:30 am Weekly Jobless Claims 9:45 am Markit Manufacturing PMI August 9:45 am Markit Services PMI August 10:00 am New Home Sales July Friday August 24, 2018 8:30 am Durable Goods Orders July 8:30 am Core Capital Goods Orders July 10:00 am Jerome Powell 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 on job openings and inflation along with weekly readings on mortgage rates and new jobless claims.
Job Openings Hit Third Highest Reading on Record Job openings held steady at 6.70 million in June, which was the third highest reading since reporting started in 2000. Analysts said that the high number of job openings combined with low unemployment rates indicates healthy labor markets. Fewer jobs were available in transportation, utilities and warehousing, but jobs in education increased. Job quits remained at 2.20 percent for the fourth consecutive month. Quits are considered an indicator of worker confidence in job markets. Inflation Inches Up Inflation rose by 0.20 percent in July according to the Consumer Price Index. While analyst expectations were met, rising housing costs offset a decline in energy prices. Core inflation, which excludes volatile food and energy readings, held steady at 0.20 percent as compared to the same reading for analyst expectations and for June. The Consumer Price Index rose 2.90 percent year-over-year, which matched June’s reading. The less volatile Core CPI, which excludes inflation readings for food and energy, rose by 2.40 percent year-over-year and was the highest reading for core inflation since 2008. Mortgage Rates, New Jobless Claims Lower Freddie Mac reported lower average mortgage rates last week. The rate for a 30-year fixed rate mortgage was one basis point lower at 4.59 percent; the average rate for a 15-year fixed rate mortgage was three basis points lower at 4.05 percent. Rates for a 5/1 adjustable rate mortgage averaged 3.80 percent, which was three basis points lower than for the previous week. First-time jobless claims fell to 213,000 new claims filed and were lower than the expected reading of 217,000 new claims and the prior week’s reading of 219,000 new claims filed. The less volatile monthly reading fell by 500 new claims to 214,250 first-time jobless claims. What‘s Ahead for the Week of August 13, 2018 This week’s economic readings include reports from the National Association of Homebuilders, Commerce Department readings on housing Monday August 13, 2018 11:00 am Survey of Consumer Expectations July Tuesday August 14, 2018 6:00 am NFIB Small Business Index July 8:30 am Import Price Index 11:00 am Household Debt Q2 Wednesday August 15, 2018 8:30 am Retail Sales July 8:30 am Retail Sales Ex-Autos July 8:30 am Empire State Index August 8:30 am Productivity Q2 8:30 am Unit Labor Costs Q2 9:15 am Industrial Production July 9:15 am Capacity Utilization July 10:00 am Home Builders' Index August 10:00 am Business Inventories June Thursday August 16, 2018 8:30 am Weekly Jobless Claims 8:30 am Housing Starts July 8:30 am Building Permits July 8:30 am Philly Fed Index August Friday August 17, 2018 10:00 am Consumer Sentiment August 10:00 am Leading Economic Indicators July 10:00 am Advance Report on Services Q2 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, Commerce Department reports on pending home sales and construction spending and an FOMC statement. Labor sector reports on job creation and the national unemployment rate were released along with the monthly Consumer Confidence Index. Weekly reports on mortgage rates and first-time jobless claims were also released.
Case-Shiller: Home Price Growth Holds Steady in May Home price analysts Case-Shiller reported national home prices rose 0.40 percent in May and were 6.40 percent higher year-over-year. Case-Shiller’s 20-City Home Price Index was 0.20 percent higher in May and 6.50 percent higher year-over-year. Only seven cities reported home price growth in May, but home prices were higher than gains reported in April. Home price gains were highest in in Seattle, Washington with a seasonally-adjusted year-over-year gain of 13.60 percent: Las Vegas, Nevada; reported seasonally-adjusted home price growth of 12.60 percent. San Francisco, California reported a seasonally-adjusted annual home price growth of 10.90 percent. Analysts said that home price growth may be slowing, but it grew faster than wages and inflation, which continued to present challenges for first-time and moderate-income hone buyers. Pending home Sales Grow as Construction Spending Dips The National Association of Realtors® reported an index reading of 106.9, which was 2.50 percent lower than in May. June was the sixth consecutive month that year-over-year pending sales were lower than in the preceding year-over-year period. Pending home sales increased by 0.90 percent in June as compared to a negative reading of -0.50 percent in May. Construction spending fell by 1.10 percent in June as compared to 1.30 percent growth in May. Analysts expected construction spending to rise by 0.90 percent in June. Home builders continued to face headwinds such as rising materials costs, labor shortages and slim supplies of buildable lots. Buy? Refi? Prequalify. Mortgage Rates, Jobless Claims Rise The Federal Open Market Committee of the Federal Reserve announced its decision not to raise the federal funds rate, which held steady at a range of 1.75 – 2.00 percent. This news did not stop average mortgage rates from moving up. The average rate for a 30-year fixed rate mortgage rose six basis points to 4.60 percent; the average rate for a 15-year fixed rate mortgage also rose six basis points to 4.08 percent. Rates for 5/1 adjustable rate mortgages also rose six basis points and averaged3.93 percent. Weekly jobless claims rose to 218,000 new claims and fell short of analyst expectations of 220,000 new claims filed, which was based on the prior week’s reading of 217,000 new claims. Unemployment rate Falls Below 4 Percent July’s National Unemployment Rate dipped to 3.90 percent and matched analyst expectations. In May, unemployment reached 4.00 percent. Jobs grew in July with ADP posting 219,000 new private-sector jobs and the Commerce Department reported 157,000 new public and private sector jobs added in July. Analysts expected 195,000 new jobs to be added to Non-Farm Payrolls based on 248,000 mew jobs added in June. The University of Michigan reported that its Consumer Confidence Index gained 0.30 points for an index reading of 127.40 percent. What‘s Ahead for the week of August 6, 2018 This week’s scheduled economic reports include readings on consumer expectations, July job openings, inflation and weekly reports on mortgage rates and new jobless claims. Monday August 6, 2018 11:00 am Survey of Consumer Expectations Tuesday August 7, 2018 10:00 am Job Openings 3:00 pm Consumer Credit Wednesday August 8, 2018 Nothing Scheduled Thursday August 9, 2018 8:30 am Weekly Jobless Claims 8:30 am Producer Price Index 10:00 am Wholesale Inventories Friday August 10, 2018 8:30 am Consumer Price Index 8:30 am Core CPI 2:00 pm Federal Budget 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.  A Mortgage Pre-Approval is Your #1 Home Buying Preparation Tool
Before you shop for a home, unless you’re paying cash, get a mortgage pre-approval.
Dave and Kelli’s Story Suppose you ignore this advice and hit the virtual tours in a hot market. What if on day one or day two you find the home of your dreams? This could pose a problem unless you’re paying cash, no one will take your offer, especially in Colorado’s extremely competitive market. You may not even be allowed to view the property in person, or your agent might not be interested in putting you in their car. Dave and Kelli found out the hard way. Dave and Kelli jumped the gun and began their home pursuit by searching for properties online. Once they found a few homes they were interested in, the couple contacted a real estate agent about seeing the properties. The agent asked if they had a mortgage pre-approval letter. Dave and Kelli assured their agent that their credit and finances were impeccable, everything was in order, and there would be no problem. Get Pre-Approved, Then Shop For Houses Unfortunately, Dave and Kelli were wrong were wrong. In fact, their offer never even got off the ground because they were unable to produce a pre-approval letter. In many of today’s hot sellers’ markets, a solid pre-approval letter is a must. To add injury to insult, John and Linda discovered that their finances were not as “flawless” as they had once thought. Dave had recently made the switch from salaried employee to a self-employed business owner. This alone can make mortgage approval difficult because lenders almost always require that taxes be paid on at least two years of successful, self-employment income before it can be used in calculating your debt to income ratio. Also, Dave, like many business owners, wrote off a sizable chunk of his gross (before tax) income — and that’s the income most mortgage loan programs use to determine what you can or cannot afford. Dave and Kelli were embarrassed and disheartened to find out that their purchasing power was only about 80 percent of what they had initially expected. This is just one of several reasons why it’s extremely astute to get pre-approved first, then shop for houses. Apply here, let’s begin the pre-approval process now! Sellers Are Pickier Than Ever (and they can be) It’s a hot market in just about every part of the country, especially in Colorado. Sellers can be far pickier when choosing what offers they are willing to accept. Keep in mind, being pre-approved can also put you on an “even” playing field when competing against cash offers. In a hot seller’s market, inventory tends to be scarce. Getting pre-approved gives you a leg-up on your competition. A mortgage pre-approval allows you to make an offer with confidence and shows that you are a serious buyer, who has done their due diligence, with the means to purchase a seller’s home. Many real estate agents will not allow homebuyers to tour their listing or make an offer if the buyers do not have a pre-approval letter from a reputable mortgage lender. What Is A Pre-Approval Letter? A mortgage pre-approval letter assures the parties involved with the transaction, sellers that you can complete the purchase of any home, and you have met the loan qualification guidelines. Mortgage pre-approval also shows you what you can afford to spend and the corresponding monthly payment. This is important **** mortgage pre-approval is not merely pre-qualification. Many lenders issue “pre-qualification” letters after asking you about your income, debts, and assets, and perhaps checking your credit. While a pre-qualification letter is better than nothing (at least you put some thought into your prospective purchase), it can’t compete with an offer from a pre-approved buyer. To secure a mortgage pre-approval, you must complete a mortgage application and submit all required documents. These can include (but are not limited to):
I hope this helps! Call me today, 303-668-3350 or apply online, and we can begin the pre-approval process. Scott Synovic Colorado's Mortgage Expert AnnieMac Home Mortgage www.mylenderscott.com Direct: 303-668-3350 The information contained in this blog is for informational purposes only and is not an advertisement for loan products. The views and opinions expressed herein are those of the author and do not reflect the policy of any entity other than the author. Not all applicants qualify. Please meet with the licensed loan originator listed for more information. Rates, fees, terms, and programs are subject to change without notice. Not all loan or products may apply. Loans subject to borrower qualifications, including income, property evaluation, sufficient equity to meet loan to value requirements, and final credit approval. Approvals are subject to underwriting guidelines. Program guidelines and are subject to change without notice. AnnieMac Home Mortgage is an Equal Housing Lender. Licensed by Colorado. Scott Synovic NMLS #253799, Licensed Mortgage Loan Originator in Colorado and California. Not endorsed or sponsored by the State of Colorado or any goverment agency. AnnieMac Home Mortgage NMLS #338923. For all list of our licenses visit nmlsconsumeraccess.org. |
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Scott Synovic NMLS #253799 Fairway Independent Mortgage NMLS #2289
NMLS Consumer Access. Fairway Independent Mortgage Corporation 950 South Cherry Street, Suite #1515, Denver, Colorado 80246 Equal Housing Lender licensed through NMLS Regulated by the Division of Real Estate. Licensed Mortgage Loan Originator licensed in Colorado and California. Not endorsed or sponsored by either state or any government agencies. |
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