Financial Reports Archives - Page 51 of 62

What’s Ahead For Mortgage Rates This Week – July 2nd, 2018 Last week’s economic reports included readings from Case-Shiller housing market indices and data released on new and pending home sales. Weekly releases on mortgage rates and first-time unemployment claims along with the Consumer Sentiment Index for June were also posted.

Case-Shiller Reports Rapid Home Price Growth in April

April home prices ticked downward by one-tenth percent for the National Home Price Index, which reported 6.40 percent growth year-over-year. Case-Shiller’s 20-City Home Price Index also dipped by one-tenth percent to 6.60 percent year-over-year. Analysts note that home prices continue to outpace wage growth and inflation, which limits affordability for many prospective home buyers.

Seattle, Washington held the top spot on the 20-City Home Price Index with year-over-year home price growth of 13.10 percent; Las Vegas, Nevada followed with year-over-year home price growth of 12.70 percent and San Francisco, California reported home price growth of 10.90 percent year-over-year. New York, New York was the only metro area to report negative home price growth. Analysts said recent tax law changes and a glut of new apartments impacted home prices.

New Home Sales Rise as Pending Home Sales Fall

Sales of new homes rose in May to a seasonally-adjusted annual level of 689,000 sales. Analysts expected 668,000 sales based on April’s downwardly-revised reading of 646,000 new homes sold. Year-to-date, sales of new homes were 8.80 percent higher than for the same period in 2017.

Rapid home price growth has been driven by high demand and limited inventories of homes for sale. Supplies of new homes dipped from a 5.40-month supply in April to a 5.20-month supply of homes for sale. Real estate pros consider a six-month supply of homes an average inventory.

Pending home sales dipped in May by -0.50 percent, as compared to April’s reading of -1.30 percent. Low supplies of available homes have sidelined buyers who haven’t found homes that they want or can afford. High demand has created bidding wars and cash buyers in some markets have sidelined moderate-income buyers and those who need financing to purchase homes.

Mortgage Rates Mixed, New Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week. Rates for a 30-year fixed rate mortgage fell by two basis points to 4.55 percent. Rates for a 15-year fixed rate mortgage averaged 4.04 percent and were unchanged from the prior week.

The average rate for a 5/1 adjustable rate mortgage was four basis points higher at 3.87 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 227,000 first-time claims filed from the prior week’s reading of 218,000 claims filed. Analysts expected 220,000 initial jobless claims.

Consumer sentiment fell to an index reading of 98.20 in June as compared to May’s reading of 99.30. according to the University of Michigan.

What‘s Ahead

This week’s scheduled economic news includes readings on construction spending and minutes of the most recent meeting of the Fed’s Federal Open Market Committee, Labor sector readings on Non-Farm payrolls, ADP payrolls and national unemployment will also be released.

Weekly reports on mortgage rates and new jobless claims will be released on schedule. U.S. Financial Markets will be closed on Wednesday in observance of Independence Day.

What’s Ahead For Mortgage Rates This Week – June 25th, 2018 Last week’s economic reports included readings from the National Association of Home Builders, Commerce Department reports on housing starts and building permits issued. Sales of pre-owned homes were reported along with weekly readings on mortgage rates and new jobless claims.

Builder Confidence Slips as Trade Wars Boost Lumber Prices

According to the National Association of Home Builders, home builder confidence in current market conditions was down two points to 68 as compared to May’s index reading of 70. Analysts said that rising lumber prices impacted builder sentiment and have replaced labor costs as builders’ primary expense.

Increased building costs were cited as a concern for builders despite high demand for homes and limited homes for sale. Rising materials costs were attributed to trade wars caused by recent tariffs on lumber.

NAHB said that three components of the Home Builders Housing Market Index were also lower in June. Builder confidence in current market conditions slipped one point to an index reading of 75; builder confidence in market conditions within the next six months also dropped one point to 76.

Builder confidence in buyer traffic in new housing developments dipped one point to 50. Any reading over 50 indicates more builders than fewer were confident about housing market conditions.

Housing Starts Hit 11-Year High in May

May housing starts surpassed April’s reading of 1.280 million starts on a seasonally-adjusted annual basis. May’s reading of 1.350 million starts also surpassed expectations of 1.300 million starts. Higher volume and faster pace of building homes was good news for real estate and mortgage industry pros, as building more homes is the only way to relieve marked shortages of available homes in many areas.

Rising materials costs could dampen construction pace as tariffs and resulting trade wars increase. May’s reading for housing starts was the highest since 2007 and was 20.00 percent higher year-over-year.

Building permits issued in May were 4.60 percent lower than April’s reading. Building permits were issued at a pace of 1.301 million permits on a seasonally-adjusted annual basis.

Sales of Pre-Owned Homes Slip as Supply Tightens

Previously owned homes sold at a slower pace in May as short supplies of homes constrained already tight markets. The National Association of Realtors® reported 5.43 million sales on a seasonally-adjusted annual basis. Analysts expected a reading of 5.52 million sales based on April’s reading of 5.45 million sales. May sales of previously owned homes were three percent lower year-over-year.

Analysts said that there is little relief in sight and that there is a growing disparity in home sales; sales of homes worth $250,000 or more were up six percent, while sales of homes worth less than $250,000 fell by eight percent. Short supplies of homes for sale encouraged bidding wars and sidelined first-time and moderate-income buyers.

Mortgage Rates, New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week; the rate for a 30-year fixed rate mortgage dropped five basis points to 4.57 percent; rates for a 15-year fixed mortgage were eight basis points lower at 4.04 percent and rates for 5/1 adjustable rate mortgages were unchanged at an average of 3.83 percent.

Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and were 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 218,000 claims filed last week as compared to the prior week’s reading of 221,000 new claims filed and expectations of 220,000 new claims.

What‘s Ahead

This week’s scheduled economic releases include Case-Shiller Home Price Indices, new and pending home sales and weekly readings on mortgage rates and new jobless claims.

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