![]() Last week’s scheduled economic reporting included readings on U.S. Housing markets, housing starts, and building permits issued. Weekly reports on new and continuing jobless claims and mortgage rates were also released. NAHB: Builder Confidence in Housing Market Recovers in June Analysts cited slim supplies of available homes, tight housing markets, and low mortgage rates as drivers of new home sales. Builder confidence in current housing market conditions rose 21 points to an index reading of 58 in June; builder confidence in housing market conditions in the next six months rose 22 points to 68. Builder confidence in buyer traffic in new single-family housing developments rose from May’s index reading of 21 to 43 in June. Readings for buyer traffic are typically lower than the benchmark reading of 50. Readings over 50 indicate that most builders are confident about housing market conditions and component readings of the Housing Market Index. Prospective home buyers continued to face obstacles of high unemployment and loss of income due to the coronavirus pandemic; these factors will likely impact builder confidence for months ahead as impacts of the pandemic change. Housing Starts, Building Permits Issued Increase in May The Commerce Department reported 974,000 housing starts on a seasonally-adjusted annual basis in May as compared to a pace of 934,000 housing starts reported in April. Building permits issued in May rose to 1.22 million permits issued on an annual basis from April’s pace of 1.07 million permits issued. Analysts expected 1.25 million permits to be issued in May on an annual basis. Mortgage Rates Hit All-Time Low as Jobless Claims Decrease Freddie Mac reported lower mortgage rates that were the lowest mortgage rates recorded. The average rate for a 30-year fixed-rate mortgage was eight basis points lower at 3.13 percent; interest rates for 15-year fixed-rate mortgages averaged 2.58 percent and were four basis points lower than for the prior week. Interest rates for 5/1 adjustable-rate mortgages averaged one basis point lower at 3.09 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable-rate mortgages. First-time jobless claims fell to 1.51 million claims last week as compared to the prior week’s reading of 1.57 million initial claims filed. Continuing jobless claims also fell; 20.50 million claims were reported as compared to 20.60 million ongoing jobless claims reported the prior week. What’s Ahead for the Week of June 22, 2020 This week’s scheduled economic reports include reports on sales of new and previously-owned homes, FHFA’s Home Price Index, and the University of Michigan’s consumer sentiment index. Monday June 22, 2020 Existing Home Sales May Tuesday June 23, 2020 New Home Sales May Thursday June 25, 2020 Durable Goods May Thursday June 25, 2020 GDP Final Q1 2020 Thursday June 25, 2020 Core PCE Prices Final Q1 2020 Thursday June 25, 2020 Initial Jobless Claims Week of June 15 Friday June 26, 2020 Personal Income May Friday June 26, 2020 Core PCE Price Index May Friday June 26, 2020 U of Mich Consumer Sentiment June 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. 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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