![]() 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. 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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