Last week’s economic news included readings on new and existing home sales and Fed Chair Jerome Powell’s testimony on changing the Fed’s business loan policy. Weekly readings on mortgage rates and jobless claims were also released.

Sales of New and Pre-Owned Homes Rise In August

New homes sold at a seasonally-adjusted annual pace of 1.01 million sales; analysts expected the sales pace to fall to 900,000 sales from July’s reading of 965,000 new home sales. Homebuyers turned to new homes as the supply of pre-owned homes dwindled. Homeowners stayed put as fears over COVID-19 contagion limited sales.

Pre-owned homes sold at a seasonally-adjusted annual rate of six million homes as compared to the expected reading of 6.03 million sales and 5.86 million sales in July. Previously-owned home sales rose by 2.40 percent from July to August and were 10.50 percent higher year-over-year. The sales pace from July to August was the fastest since December 2006.

The median sales price of pre-owned homes rose to $310.600 in August and the average price for pre-owned homes was 11.40 percent higher year-over-year. Inventories of available pre-owned homes were lower than the six months supply considered average; there was a three months inventory of unsold pre-owned homes in August.

Mortgage Rates, Jobless Claims Mixed

Freddie Mac reported higher fixed mortgage rates last week as the average rate for 5/1 adjustable rate mortgages fell. 30-year fixed-rate mortgages rose three basis points on average to 2.90 percent. Rates for 15-year fixed-rate mortgages averaged 2.40 percent and were five basis points higher. The average rate for 5/1 adjustable rate mortgages was six basis points lower at 2.90 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.20 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 870,000 new claims filed from the prior week’s reading of 866.000 initial claims filed. Continuing jobless claims fell to 12.58 million ongoing claims from 12.78 million ongoing claims filed in the prior week.

In other news, Fed Chair Jerome Powell testified before the House Financial Services Committee regarding the feasibility of the Federal Reserve offering smaller business loans for COVID-19 relief. The Fed’s current minimum loan amount is $250,000; Chairman Powell told the Committee that the Fed’s loan program had few requests for loans of less than $1 million. He also said that if the minimum loan amount was changed, the current lending program would have to be scrapped and restarted from scratch.

What’s Ahead for the Week of September 28, 2020

This week’s scheduled economic releases include Case-Shiller Home Price Indices,  pending home sales and reports on public and private-sector jobs, and 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 housing market conditions, housing starts, building permits issued, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

National Association of Home Builders Reports Record High Builder Confidence

The NAHB reported record high builder confidence in housing market conditions. The Housing Market Index had an index reading of 83 in September as compared to August’s reading of 78. Analysts said that this builder confidence reading was notable due to rising costs for building materials.


Component readings of the NAHB Housing Market Index also rose in September. Builder confidence in current single-family housing market conditions rose four points to an index reading of 88; builder confidence in housing market conditions in the next six months rose by six points to 84. Builder confidence in buyer traffic in single-family housing developments rose by nine points to a record index reading of 73.

Builder confidence readings over 50 reflect growing builder confidence in housing market conditions. March and April fell below 50 but rebounded as demand for larger suburban homes took hold as working from home increased. Record low mortgage rates are allowing home buyers to buy larger homes with more amenities. Robert Dietz, the chief economist for the NAHB, said that “Builders in other areas of the country have reported receiving calls from customers in high-density markets asking about relocating.”

Housing Starts and Building Permits Drop in August

The Commerce Department reported 1.42 million housing starts on a seasonally-adjusted basis in August as compared to July’s reading of 1.49 million housing starts. 1.47 million building permits were issued on a seasonally-adjusted annual basis;

Mortgage Rates Mixed, Jobless Claims Fall

Freddie Mac reported mixed changes in mortgage rates; rates for 30-year fixed-rate mortgages averaged 2.87 percent and rose by one basis point. Rates for 15-year fixed-rate mortgages were two basis points lower on average at 2.35 percent. Rates for 5/1 adjustable rate mortgages averaged 2.96 percent and were 15 basis points lower. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 860,000 from the prior week’s reading of 893,000 new claims filed. Ongoing jobless claims also fell; 12.63 million were filed as compared to the prior week’s reading of 29.67 continuing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index also indicated economic growth with an index reading of 78.9 as compared to August’s reading of 74.1. Analysts expected am index reading of 75.9 for September.

What’s Ahead for the Week of September 21, 2020

This week’s scheduled economic readings include reports on new and existing home sales along with weekly reports on mortgage rates and jobless claims.

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 inflation, job openings, and weekly reports on jobless claims and mortgage rates.

Inflation Rate Slows in August

After posting 0.60 percent growth for each month in June and July, the Consumer Price Index rose by 0.40 percent in August. These growth rates offset declines in inflation during the first three months of the COVID-19  pandemic. Used vehicle prices increased after deep discounts offered when the pandemic started; analysts said that rising prices for used vehicles offset losses in revious months and produced low inflation for August.

Core inflation, which excludes volatile food and energy sectors, mirrored results for the Consumer Price Index with 0.40 percent growth in August as compared to 0.60 percent growth in consumer prices in July. Prices for items in high demand in the first months of the pandemic have stabilized as panic buying of paper goods and meat has subsided. 

July Job Openings Increase; Labor Market Remains Uncertain

617,000 jobs were added in July as compared to 600,000 jobs added in June. Hiring fell in July to a pace of 5.80 million hires as compared to nearly seven million hires in June. Job openings rose by 617,000 job openings to 6.60 million openings in July. Analysts said that seven million jobs were added per month before the pandemic.

Mortgage Rates Fall to Record Low, Jobless Claims Hold Steady

Freddie Mac reported record low fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.86 percent and were seven basis points lower. Rates for 15-year fixed-rate mortgages averaged 2.37 percent and were five basis points lower. Rates for 5/1 adjustable rate mortgages rose by 11 basis points to an average of 3.11 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.20 percent for 5/1 adjustable rate mortgages.

Initial jobless claims were unchanged from last week’s reading of 884,000 new claims filed. Continuing jobless claims rose to 13.39 million from the prior week’s reading of 13.29 million ongoing claims filed. 

What’s Ahead for the Week of August 14, 2020

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market conditions, reports on housing starts, and building permits issued The University of Michigan will issue its Consumer Sentiment Index. Weekly readings on mortgage rates and 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 scheduled economic news included readings on construction spending and labor sector reports on public and private sector jobs. The national unemployment rate was also reported. Weekly readings on mortgage rates and jobless claims were also published.

July Construction Spending Rises

Construction spending rose from June’s seasonally adjusted annual pace of  $1.363 billion to $1,365 billion in July. The U.S. Census Department reports construction spending and readings are subject to adjustment. Growth in construction spending is due to a demand for homes in less congested areas.COVID-19 is creating more demand for larger homes that accommodate working from home.

Mortgage Rates Mixed as Jobless Claims Fall

Mortgage rate activity was mixed last week amid incremental changes. Freddie Mac reported that rates for 30-year fixed-rate mortgages rose two basis points to 2.93 percent; the average rate for 15-year fixed-rate mortgages fell by four basis points to 2.42 percent. Rates for 5/1 adjustable rate mortgages rose by two basis points to 2.93 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

New and continuing jobless claims fell last week. 881,000 initial jobless claims were filed last week as compared to 1.01 million first-time claims filed the prior week.13.25 million continuing jobless claims were filed last week as compared to Ongoing jobless claims were lower last week with 13.250 million claims filed as compared to 14.490 million ongoing unemployment claims filed during the prior week. Falling jobless claims indicate strengthening economic conditions as businesses reopen and employers rehire former employees and add new employees.

Jobs Growth Reports Mixed, National Unemployment Rate Falls

ADP reported 428,000  private-sector jobs added in August as compared to July’s reading of 212,000 jobs added. The Commerce Department’s Non-Farm Payrolls report showed 1.37 public and private-sector jobs.added in August as compared to 1.73 million jobs added in July. Analysts said that looming layoffs in airlines and travel sectors could slow job growth. The national unemployment rate fell to 8.40 percent in August from July’s reading of 10.20 percent.

 Based on these readings, the economy is rebounding from the impacts of COVID-19, but analysts were cautious as the three-day Labor Day weekend approached. COVID-19 cases rose after the Memorial Day and Fourth of July holidays. Increasing cases of COVID-19 could cause state and local governments to impose restrictions aimed at reducing the spread of the coronavirus. 

What’s Ahead for the Week of September 8, 2020

This week’s scheduled economic reports include reports on inflation and weekly readings on mortgage rates and jobless claims.

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.