![]() Last week’s economic reports included readings on builder confidence, housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released. NAHB: Builder Confidence Drops by One Point The National Association of Home Builders reported that builder confidence dipped by one point in April to an index reading of 69. While any reading over 50 indicates positive builder sentiment, NAHB noted that builder sentiment has decreased for the past four months. During the housing bubble of 2004 and 2005, builder confidence in market conditions averaged 68, but analysts said that the post bubble crash in home values was preceded by several months of decreasing builder sentiment. Builders are maintaining a steady approach to housing starts despite high demand in many markets. Short supplies of available homes are driving prices higher and causing issues of affordability for would be buyers. Home builders continued to face shortages of buildable lots and rising materials prices. This could account for decisions not to ramp up home construction enough to meet demand. Buy? Refi? Prequalify. Housing Starts, Building Permits Rise According to the Commerce Department, housing starts and building permits issued rose in March. 1.319 million starts were reported on a seasonally-adjusted annual basis as compared to 1.1,295 million starts in February. Analysts expected housing starts to drop in March to 1.255 million, due to rising materials costs and concerns over trade wars. Housing starts were 10.90 percent higher year-over-year. Single-family housing starts were lower by 3.70 percent lower than for February, but were 8.00 percent higher year-over-year. This suggests that aside from seasonal fluctuations, home builders are boosting their efforts to keep up with demand for homes. Building permits issued increased in March to 1.354 million on a seasonally-adjusted annual basis; the February reading showed 1.321 million building permits issued. Building permits issued in March were 2.50 percent higher than for February and 7.50 percent higher year-over-year. Mortgage Rates, Jump, New Jobless Claims Dip Freddie Mac reported higher average mortgage rates last week, with the rate for a 30-year fixed rate mortgage rising by five basis points to 4.47 percent. This was the highest average rate for 30-year fixed rate mortgages since January 2014 and the highest weekly rate increase since February. Rates for 15-year fixed rate mortgages averaged 3.94 percent and increased by seven basis points. The average rate for 5/1 adjustable rate mortgages was six basis points higher at 3.67n percent. Discounts 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. New jobless claims were lower last week with 232,000 new claims filed. Analysts expected 230,000 new claims based on the prior week’s reading of 233,000 new claims filed. Buy? Refi? Prequalify. What‘s Ahead This week’s economic reports include readings from Case-Shiller Home Price Indices, sales reports for new and previously-owned homes, and weekly readings on average mortgage rates and new jobless claims. A monthly reading for consumer sentiment will be released Friday. Economic Calendar for the week of April 23, 2013 Monday April 23, 2018 8:30 am Chicago Fed National Activity Index 9:45 am Markit Manufacturing PMI (flash) 9:45 am Markit Services PMI (flash) 10:00 am Existing Home Sales March Tuesday April 24, 2018 9:00 am Case-Shiller Home Prices 10:00 am Consumer Confidence Index 10:00 am New Home Sales March Wednesday April 25, 2018 Nothing Scheduled Thursday April 26, 2018 8.30 am Weekly Jobless Claims 8:30 am Durable Goods Orders 8:30 am Core Capital Equipment Orders 8:30 am Advance Trade In Goods 10:00 am Housing Vacancies Friday April 27, 2018 8:30 am Gross Domestic Product 8:30 am Employment Cost Index 10:00 am Consumer Sentiment Index Call me now, 303.668.3350 or click here to apply. Buy? Refi? Prequalify. Get the Insider Track on Interest Rates! Cheers! Scott Synovic Nations Reliable Lending, LLC Colorado's Mortgage Expert www.coloradosmortgageexpert.com 303.668.3350 Direct NMLS: 253799 / NRL NMLS: 181407 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. Scott Synovic is a top performing mortgage loan originator providing superior levels of service and satisfaction to clients and business partners in Colorado - www.scottsynovic.com NMLS #253799 Fairway Independent Mortgage Corporation #2289
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