![]() Last week’s economic reports included analyst assertions that U.S. housing markets are overvalued in over 50 percent of markets. Weekly reports on mortgage rates and first-time jobless claims were also released. CoreLogic: Over Half of Top 50 U.S. Housing Markets Overvalued Rapidly rising home prices are causing some U.S. markets to be overvalued, which means that home prices are higher than a community’s ability to sustain. What goes up must come down in such scenarios, but home prices continue to grow in many areas. While Boston, Massachusetts and San Francisco, California continued to see rapidly rising home prices, analysts said that residents of the two cities had incomes sufficient to meet the cost of homes. Examples of cities where home prices were overvalued in April included Los Angeles, California, Denver, Colorado and Washington, D.C. Supplies of available homes have fallen over the last three years. Real estate pros and analysts continue to cite building more homes is the only solution to the shortage. The National Association of Realtors® said that although supplies of new homes have increased in recent months, most newly built homes are priced for move-up buyers. Moderate-income and first-time buyers haven’t seen much improvement in available affordable homes. Rising mortgage rates in recent months also presented an obstacle to finding affordable homes. Mortgage Rates, New Jobless Claims Fall Freddie Mac reported lower average mortgage rates last week. Rates for a 30-year fixed rate mortgage fell two basis points to 4.54 percent; rates for a 15-year fixed rate mortgage were five basis points lower at an average rate of 4.01 percent. Rates for a 5/1 adjustable rate mortgage averaged 3.74 percent and were six basis points lower. Discount points for 30-year fixed rate mortgages averaged 0.50 percent; discount points for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages averaged 0.40 percent. First-time jobless claims fell last week despite predictions that they would rise. 222,000 new claims were filed as compared to expectations of 225,000 new claims and the prior week’s reading of 223,000 new claims. Buy? Refi? Prequalify. What’s Ahead for the Week of June 11, 2018 This week’s scheduled economic releases include the post-meeting statement from the Federal Reserve’s Federal Open Market Committee, readings on consumer prices and retail sales. Mortgage rates and new jobless claims will also be released. Monday June 11, 2018 11:00 am Survey of Consumer Expectations Tuesday June 12, 2018 6:00 am NFIB Small-Business Index May 8:30 am Consumer Price Index May 8:30 am Core CPI May 2:00 pm Federal Budget May Wednesday June 13, 2018 8:30 am Producer Price Index May 2:00 pm FOMC Announcement 2:30 pm Jerome Powell Press Conference Thursday June 14, 2018 8:30 am Weekly Jobless Claims 8:30 am Retail Sales May 8:30 am Retail Sales Ex-Autos May 8:30 am Import Price Index May 10 am Business Inventories April Friday June 15, 2018 8:30 am Empire State Index June 9:15 am Industrial Production May 9:15 am Capacity Utilization May 10:00 am Consumer Sentiment Index June 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. 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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