Last week’s economic readings included reports on sales of new and previously-owned homes, and weekly reports on mortgage rates and first-time jobless claims.

Sales of New and Pre-owned Homes Falter in July

Home sales were lower in July, with new and pre-owned home sales falling short of projections and June sales. According to the Commerce Department, new homes sold at an annual rate of 627,000 sales as compared to 640,000 new home sales projected and a pace of 638,000 homes sold in June.

Downward revisions for previous months contributed to a lower sales pace reported in July; but the average price of a new home was $3278,700 in July, which may indicate that home prices are tapping out. July prices dropped 1.70 percent from June but were 12.80 percent higher year-over-year.

Sales of previously-owned homes were also lower in July with an annual pace of 5.34 million homes sold as compared to the expected reading of 5.40 million sales and June’s reading of 5.38 million sales. July’s reading was the lowest in two and a half years and indicated that low inventories of available homes coupled with high home prices has sidelined would-be buyers who can’t find or afford homes they want to buy.

The National Association of Realtors ® reported that Inventories of homes were 0.70 percent lower in July after rising in June. Sales of pre-owned homes were 0.50 percent lower in July and were unchanged year-over-year.

Mortgage Rates, New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week; the rate for a 30-year fixed rate mortgage fell two basis points to 4.51 percent. Mortgage rates for a 15-year fixed rate mortgage averaged 3.98 percent and three basis points lower than the prior week.

Rates for 5/1 adjustable rate mortgages averaged 3.82 percent and were five basis points lower. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 210,000 claims filed as compared to an expected reading of 215,000 new claims and the prior week’s reading of 212,000 first-time jobless claims.

What‘s Ahead

This week’s scheduled economic reports include readings from Case-Shiller’s Home Price Index, pending home sales and inflation. Weekly readings on mortgage rates and new jobless claims will also be released.

Last week’s economic reports included readings from the National Association of Home Builders and Commerce Department releases on Housing Starts and Building Permits issued. Weekly readings on mortgage rates and first-time jobless claims were released, along with a monthly report on consumer sentiment.

NAHB: Home Builder Housing Market Index Drops 1 Point

August’s reading for the National Association of Home Builders Housing Market Index dropped one point to 67. This was the lowest reading for home builder confidence in housing market conditions in 11 months. Analysts said that trade wars are causing concern among builders due to higher costs for building materials. Higher costs will be passed on to home buyers, many of whom are already challenged by rising home prices and strict mortgage approval requirements.

Housing starts reached 1.168 million on an annual basis in July; analysts expected 1.270 million starts based on June’s reading of 1.158 million starts. Building permits issued increased in Jul with 1.311 million permits issued on an annual basis. June’s reading was 1.292 permits issued. Lower numbers of available new homes were a potential problem for housing sector, but demand remains high.

Mortgage Rates and New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week; the rate for 30-year fixed rate mortgages fell six basis points to 4.53 percent. The average rate for a 15-year fixed rate mortgages fell four basis points to 4.01 percent and rates for a 5/1 adjustable rate mortgage averaged three basis points lower at 3.87 percent.

First-time jobless claims fell to 212,000 new claims as compared to expectations of 215,000 new claims and the prior week’s reading of 214,000 new clams filed. The latest reading approached the level of new jobless claims seen as a post-recession low First-time unemployment claims indicate levels of lay-offs and are viewed by analysts as an indicator of job market performance.

The University of Michigan reported that consumer sentiment reached its lowest reading since 2006. Analysts said that consumer concerns were concentrated among the bottom third of income ranges surveyed. Rising consumer costs caused August’s consumer confidence index to slip to 95.3 as compared to an expected index reading of 98.5. July’s consumer sentiment reading was 97.9.

What‘s Ahead

This week’s scheduled economic reports include readings on new and pre-owned home sales and minutes from the most recent meeting of the Fed’s Federal Open Market Committee. Weekly readings on mortgage rates and new jobless claims will also be released.