Last week’s economic reporting included readings on sales of new and previously-owned homes, inflation, and weekly readings on mortgage rates and jobless claims. President Biden announced his nomination of Federal Reserve chairman Jerome Powell for a second term.  Financial markets were closed Thursday and Friday for the Thanksgiving holiday.

Single-Family Home Sales Increase in October
​
The Commerce Department reported sales of new homes rose in October with 745,000 new homes sold on a seasonally-adjusted annual basis. October sales fell short of the 800,000 new home sales expected by analysts but surpassed September’s reading of 742,000 new homes sold.

The National Association of Realtors® reported 6.34 million previously owned homes were sold on a seasonally-adjusted annual basis in October. Sales of previously-owned homes rose by 0.80 percent from September to October and exceeded expectations of 6.20 million sales and September’s reading of 6.29 million sales of previously-owned homes. Real estate pros said that high demand for homes and strong job growth contributed to October’s reading.

Slim inventories of homes for sale and rising home prices continued to sideline some buyers; competition with cash buyers also caused difficulties for would-be buyers who relied on mortgage loans. 6.34 million pre-owned homes were sold year-over-year in October and exceeded expectations of 6.20 million sales and September’s reading of 6.29 million pre-owned homes sold.

LawrenceYun, the chief economist at the National Association of Realtors®, said,  “Inflationary pressures such as fast rising rents and increasing consumer prices may have some prospective buyers seeking the protection of a fixed consistent mortgage payment.” Rapidly rising home prices challenged would-be home buyers as the median price for a single-family home rose to $353,900 in October, which was more than 13 percent higher year-over-year. The inventory of available homes equaled September’s inventory with a 2.40  month supply of homes for sale. Real estate pros typically consider a six-month supply of homes for sale as a sign of balanced markets.

Mortgage Rates Little Changed as Jobless Claims Fall

Freddie Mac reported no change in the average rate of 3.10 percent for 30-year fixed-rate mortgages; the average rate for 15-year fixed-rate mortgages rose three basis points to 2.42 percent. The average rate for 5/1 adjustable rate mortgages fell two basis points to 2.47 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims fell to 199,000 first-time claims filed as compared to the expected reading of 260,000 new claims filed and the prior week’s reading of 270,000 first-time jobless claims filed. 2.05 million continuing jobless claims were filed as compared to 2.11 million ongoing claims filed in the prior week.

What’s Ahead for the Week of November 29, 2021

This week’s scheduled economic reporting includes readings from S&P Case-Shiller Housing Market Indices, along with reporting on pending home sales and construction spending. Public and private-sector job reports and the national unemployment rate will also be released along with 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.

Last week’s economic reports included readings on home price growth from S&P Case-Shiller Home Price Indices, data on new home sales, and the University of Michigan’s Consumer Sentiment Index. Weekly readings on mortgage rates and jobless claims were also published. 

Case-Shiller: Home Price Growth Slower, but Prices Aren’t Falling

National home prices rose by a seasonally-adjusted annual pace of 19.80 percent in August, which was incrementally lower than July’s year-over-year home price growth rate. Analysts said that rising mortgage rates caused some buyers to leave the market and eased demand in areas where bidding wars drove home prices beyond market value in some areas.

The S&P Case-Shiller 20-City Home Price Index reported a seasonally-adjusted annual pace of  19.70 percent growth for August home prices in metro areas included in the index. Home price growth was slower than July’s year-over-year reading of 20.00 percent. Phoenix, Arizona held the top position with year-over-year home price growth of 33.30 percent. San Diego, California maintained second place with year-over-year home price growth of 26.20 percent. Tampa, Florida displaced previous holders of third place with its home price growth rate of 25.90 percent.

Craig J. Lazzara, managing director and global head of index investment strategy at  S&P Dow Jones Indices, said: “Every one of our city and composite indices stands at its all-time high, and year-over-year price growth continues to be very strong, although moderating somewhat from last month’s levels.”

The Federal Housing Finance Administration, which oversees Fannie Mae and Freddie Mac, published similar results for home price growth in August. Lynn Fisher, deputy director for research and statistics at FHFA, said, “Annual house price gains remained extremely high in August, but the pace of month-over-month gains continues to decelerate…This suggests we may have seen the peak in annual home price  gains for the time being.”

Recent home price growth was driven by high demand for homes and limited supplies of new and pre-owned homes for sale, but rapidly rising home prices and mortgage rates sidelined some buyers.

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose five basis points to 3.14 percent. Rates for 15-year fixed-rate mortgages rose four basis points and averaged 2.37 percent. The average rate for a  5/1 adjustable-rate mortgage rose two basis points to 2.56 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims fell to 281,000 first-time claims filed as compared to the prior week’s reading of 291,000 new claims filed. Ongoing jobless claims filed also decreased with 2.24 million continuing claims filed as compared to 2.48 million continuing jobless claims filed during the prior week.

The University of Michigan’s Consumer Sentiment Index for October rose to an index reading of 71.7 as compared to September’s reading of 71.4. Analysts expected a reading of 71.9 for October.

What’s Ahead for the Week of November 1, 2021

This week’s scheduled economic news includes readings on construction spending, the post-meeting statement, and a press conference from the Fed’s Federal Open Market Committee and Fed Chair Jerome Powell. Data on public and private-sector jobs will be released along with the national unemployment rate. Weekly readings on mortgage rates and jobless claims will also be published.

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.