Last week’s economic news included readings on sales of new homes and pending home sales. A reading on consumer sentiment was also released along with weekly reports on mortgage rates and new jobless claims.

Sales of New Homes Slide to Near 2 – Year Low


According to Commerce Department readings on new home sales, the pace of sales slipped close to a two-year low in September; new homes sold at a seasonally-adjusted annual pace of 553,000 sales.

September’s reading was 5.50 percent lower than for August and was 13.20 percent lower year-over-year. Analysts expected a reading of 620,000 sales; August’s reading showed an annual pace of 585,000 new homes sold.

Real estate pros reported a 7.10-month supply of available homes, which was a six-year high. A six-month supply of homes for sale is considered a normal inventory in many markets.

Home prices had a median of $320,000 in September, which was 3.50 percent lower year-over-year. Strong demand for homes coupled with limited supplies have caused home prices to rise and buyers to compete with cash-buyers and ever escalating home prices. Rising mortgage rates and few choices of available homes have sidelined moderate and first-time buyers.

Pending Home Sales Rise in September

The National Association of Realtors® reported rising pending home sales, which provided hope for lagging home sales. Pending sales are sales for which a purchase contract is signed but the sale has not yet closed. Pending home sales had an index reading of 104.6 in September as compared to 104.1 in August. No change from August’s reading was expected in September. The pending sales index pending home sales index was one percent lower year-over-year.

Pending sales rose 4.40 percent in the West; The Midwest posted a gain of 1.20 percent and the South posted a negative reading of – 0.40 percent. The South posted a negative reading of -1.40 percent in pending home sales.

Pending home sales are considered a predictor of completed sales and new mortgages.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week. Rates for a 30-year fixed rate mortgage rose one basis point to 4.86 percent; the average rate for a 15-year fixed rate mortgage rose three basis points to 4.29 percent and the average rate for 5/1 adjustable rate mortgages was four basis points higher at 4.14 percent. 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.

First-time jobless claims rose last week to 215,000 new claims filed. Analysts expected no change from the prior week’s reading of 210,000 new claims filed. The University of Michigan reported a dip in its consumer sentiment index for October. September’s reading was adjusted from and index reading of 99 to 100.1. October’s reading was 99.  Lower consumer sentiment was based on stagnant wage growth according to analysts.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of October 29, 2018

This week’s scheduled economic news includes readings from Case-Shiller on home prices, Labor sector reports on private and public sector employment and the national unemployment rate.

Monday October 29, 2018

8:30 am                Personal Income              
8:30 am                Consumer Spending September               
8:30 am                Core Inflation September            

Tuesday October 30, 2018

9:00 am               Case-Shiller Home Price Index August
10:00 am             Consumer Confidence Index October     
10:00 am             Home Ownership Q3

Wednesday October 31, 2018

8:15 am                ADP Employment October
8:30 am                Employment Cost Index Q3
9:45 am                Chicago PMI October

Thursday November 1, 2018

8:30 am                Weekly Jobless Claims 10/27
8:30 am                Productivity Q3
8:30 am                Unit Labor Costs Q3
9:45 am                Markit Manufacturing PMI October Final
10:00 am             ISM Manufacturing Index October
10:00 am             Construction Spending September
Varies                   Motor Vehicle Sales October        

Friday November 2, 2018

8:30 am                Nonfarm Payrolls October           
8:30 am                Unemployment Rate October   
8:30 am                Average Hourly Earnings October
8:30 am                Trade Deficit September
10:00 am              Factory Orders September

Buy? Refi? Prequalify.

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 home builder confidence, sales of pre-owned homes and housing starts.  The Commerce Department also issued a report on building permits issued; weekly reports on mortgage rates and first-time jobless claims were also released.

Homebuilder Confidence Rises One Point

The National Association of Home Builders reported a reading of 68 for October, which surpassed August’s reading of 67. Any reading over 50 indicates most home builders are confident about housing market conditions. Builders cited ongoing headwinds including higher prices for materials, shortages of lots and labor and rising mortgage rates. Builders sought ways to provide more affordable housing options as they faced higher costs.

Regional readings of builder confidence readings, which are tracked on a three-month rolling average, were missed. The northeastern region gained three points for a reading of 57; the southern region gained one point for an index reading of 70. The Midwestern region lost two points for a reading of 57. The western region was unchanged from September’s reading of 74.

Sales of Pre-owned Homes Slip toward 3 Year Low

The National Association of Realtors® reported fewer sales of pre-owned homes in September;5.15 million sales were reported on a seasonally adjusted annual basis as compared to August’s reading of 5.33 million sales. Analysts expected a reading of 6.27 million sales for September. Faced with high home prices and slim inventories of available homes, would-be buyers sidelined their searches for homes. Housing starts were 3.40 percent lower month-to-month and hit their lowest rate since November 2015.

According to the Commerce Department, housing starts also fell in September to 1.201 million starts on a seasonally adjusted annual basis. August’s reading was 1.268 million starts. Year-over-year, housing starts were 3.70 percent higher., but fewer housing starts were bad news for housing markets as demand continued to exceed supplies of available homes. Building permits issued also fell in September to 1.242 million permits issued as compared to August’s reading of 1.249 million permits issued.

Mortgage Rates, New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week. Rates for 30-year fixed rate mortgages were five basis points lower at 4.85 percent; rates for a 15-year fixed rate mortgage averaged three basis points lower at 4.26 percent. The average rate for 5/1 adjustable rate mortgages was three basis points lower at 4.10 percent.
First-time jobless claims also fell last week to 210,000 new claims filed, which matched expectations but was lower than the prior week’s reading of 215,000 new claims filed.

Buy? Refi? Prequalify.

What‘s Ahead for the week of October 22, 2018

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

Buy? Refi? Prequalify.

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 releases on inflation, consumer sentiment. Weekly readings on mortgage rates and new jobless claims were also released.

Inflation and Consumer Sentiment Dip

The Commerce Department reported slower growth in inflation for September. The Consumer Price Index for September showed a growth rate of 0.10 percent. Analysts projected a reading of 0.20 percent growth, which was based on August’s reading of 0.20 percent.

This was the sixth consecutive month-to-month increase in the inflation rate. Year-over-year, inflation has grown 2.30 percent as compared to the prior year-over-year rate of 2.70 percent. Analysts said that rising rents and homeownership costs drove consumer prices higher, but consumer prices in other sectors eased.

Core inflation, which excludes volatile food and energy sectors, was unchanged at 0.10 percent growth month-to-month. Analysts expected CPI to increase to 0.20 percent.

According to the University of Michigan Consumer Sentiment Index for October, Consumer confidence slipped to an index reading of 99.00 as compared to September’s reading of 100.1 and expectations for an October reading of 100.6.

October’s reading exceeded the average reading of 98.50 for 2018.Analysts attributed October’s lower reading to consumer concerns over their finances as inflation rises and income remains relatively unchanged.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week. The average rate for 30-year fixed rate mortgages rose 19 basis points to 4.90 percent. 15-year fixed rate mortgage rates were 14 basis points higher and averaged 4.29 percent.

Rates for 5/1 adjustable rate mortgages averaged 4.07 percent and rose by six basis points. Last week’s average mortgage rates were the highest rates seen since April 14, 2011.

First-time jobless claims rose by 7,000 new claims filed to 214,000 new claims. Analysts expected a reading of 205,000 new claims filed based on the prior week’s reading of 207,000 first-time claims filed.

Last week’s reading was attributed to effects of Hurricane Florence, but economists said that the reading was close to low readings seen in the late 1960s.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of October 15, 2018

This week’s scheduled economic news includes readings on sales of pre-owned homes, the National Association of Home Builders Housing Market Index, Commerce Department reports on housing starts and building permits issued. The Fed’s FOMC meeting minutes will also be released, along with weekly readings on mortgage rates and first-time jobless claims.

Monday October 15, 2018

8:30 am Retail Sales September
8:30 am Retail Sales Excluding Autos September
8:30 am Empire State Index October
10:00 am Business Inventories August

Tuesday October 16, 2018

9:15 am Industrial Production September
9:15 am Capacity Utilization September
10:00 am Job Openings August
10:00 am Home Builders' Index October

Wednesday October 17, 2018

8:30 am Housing Starts September
8:30 am Building Permits September
2:00 pm FOMC Minutes 9/25 - 26

Thursday October 18, 2018

8:30 am Weekly Jobless Claims 10/13
8:30 am Philly Fed Manufacturing October
10:00 am Leading Economic Indicators September

Friday October 19, 2018

10:00 am Existing Home Sales September

Buy? Refi? Prequalify.

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 construction spending and labor reports on public and private-sector job growth. The national unemployment rate was released along with weekly reports on mortgage rates and weekly jobless claims.

Construction Spending dips in September, but Residential Construction Spending Rises

Construction spending rose 0.10 percent in September, but residential construction spending fell 0.70 percent month-to-month.

Construction spending was 4.10 percent higher year-over-year. January through August construction spending was 5.30 percent higher than for the same period in 2017.

Analysts estimated a shortage of approximately four million homes; which accentuates demand and drives prices up. In recent years, builders have concentrated on higher-end homes, but analysts said that a shift to building super-affordable homes may be in the works. High home prices and ever-increasing rents are squeezing moderate-income families; providing more affordable housing options could lessen demand and help home price growth to normalize.

Mortgage Rates Little Changed, New Jobless Claims Lower
Freddie Mac reported little change in mortgage rates; 30-year fixed rate mortgages averaged one basis point lower at 4.71 percent. The average rate for a 15-year fixed rate mortgage was also one basis point lower at 4.15 percent. Rates for 5/1 adjustable rate mortgages averaged 4.01 percent and were four basis points higher. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.
First-time jobless claims fell last week to 207,000 new claims filed as compared to expectations of 213,000 new claims filed and the prior week’s reading of 214,000 claims filed. Analysts said that fewer claims were filed as the impact of Hurricane Florence diminished.
Labor Reports: Job Growth Mixed as Unemployment Rate Nears 49 Year Low
Commerce Department readings on public and private-sector job growth showed more private sector jobs, while the government reading for public and private sector jobs dropped/ ADP reported 230,000 more private-sector jobs in September; the government’s Non-Farm Payrolls report showed 134,000 new public and private sector jobs as compared to 270,000 new jobs in the prior month. Analysts expected 168,000 new public ad private sector jobs and said that the shortfall in job growth for September was a consequence of Hurricane Florence.

The National Unemployment Rate fell to 3.70 percent in September, which was the lowest reading in nearly 49 years.
What‘s Ahead
This week’s scheduled economic releases include readings on inflation, core inflation and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.

Buy? Refi? Prequalify.

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 readings included reports on home prices, new and pending home sales and remarks released by the Federal Open Market Committee of the Federal Reserve. Weekly readings on average mortgage rates and first-time jobless claims were also released.

Case-Shiller HPI: Home Price Growth Slows in July

Home prices grew slower in July according to data released last week. Home prices rose at a seasonally-adjusted annual rate of 6.0 percent in July as compared to June’s rate of 6.2 percent growth. Analysts cited increasing inventories of homes available, which typically increases competition and lowers asking prices. Would-be home buyers have also suspended their home searches due to slim supplies of homes and competition with cash buyers.

New and Pending Home Sales Show Mixed Results

Sales of new homes rose in August according to the Commerce Department. New homes sold at a seasonally adjusted annual rate of 629,000 sales. Analysts expected a reading of 625,000 sales New home sales grew by 3.50 percent from July to August and were 12.70 percent higher year-over-year. New homes sold for an average price of $320,200 in August, which was a year-over-year price increase of 1.90 percent.

Pending home sales dipped in August with a reading of – 1.80 percent in August as compared to July’s reading, which was also negative at 0.80 percent. Pending sales typically slow as fall approaches and peak hone buying season ends. Pending home sales indicate what’s ahead in closed home sales and mortgage loans. Analysts said that government readings on home sales are gleaned from small samples and are subject to adjustment.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week after the Federal Reserve announced that it would raise its target federal funds range to 2.00 to 2.25 percent. Analysts said that the Federal Open Market Committee dropped the term “accommodative” in its post-meeting announcement on Wednesday.

Interest rates for a 30-year fixed rate mortgage averaged 4.72 percent, which was an increase of seven basis points. The average rate for a 15-year fixed rate mortgage rose five basis points to 4.16 percent and the average rate for a 5/1 adjustable rate mortgage rose five basis points to 3.97 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims also rose last week with 214,000 first-time claims filed as compared to expectations of 216,000 new claims filed and the prior week’s reading of 202,000 new claims filed. High numbers of claims filed in Kentucky, North Carolina and South Carolina suggested that the jump in initial claims related to Hurricane Florence.

Buy? Refi? Prequalify.

What‘s Ahead for the Week of October 1, 2018

This week’s scheduled economic releases include readings on public and private-sector jobs growth, the national unemployment rate and construction spending. Weekly readings on mortgage rates and new unemployment claims will also be released.

Monday October 1, 2018

9:00 am Raphael Bostic Speaks
9:45 am Markit Manufacturing PMI September
10:00 am ISM Manufacturing Index September
10:00 am Construction Spending August
11:00 am Neel Kashkari Speaks
12:15 pm Eric Rosengren Speaks
 
Tuesday October 2, 2018

Varies Motor Vehicle Sales September
10:00 am Randal Quarles Testifies
12:00 pm Jerome Powell Speaks
2:00 pm Rob Kaplan Speaks
 
Wednesday October 3, 2018

6:30 am Charles Evans Speaks
8:05 am Tom Barkin Speaks
8:15 am ADP Employment September
9:45 am Markit Services PMI September
10:00 am ISM Nonmanufacturing Index September
2:00 pm Lael Brainard Speaks
2:15 pm Loretta Mester Speaks
4:00 pm Jerome Powell Speaks
 
Thursday October 4, 2018

8:30 am Weekly Jobless Claims 9/27
9:15 am Randal Quarles Speaks
10:00 am Factory Orders August

Friday October 5, 2018

8:30 am Nonfarm Payrolls September
8:30 am Unemployment Rate September
8:30 am Average Hourly Earnings September
8:30 am Trade Deficit August
12:30 pm Rob Kaplan Speaks
12:45 pm Raphael Bostic Speaks
3:00 pm Consumer Credit August

Buy? Refi? Prequalify.

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.