Last week’s economic news included readings on home prices, inflation, and data on public and private-sector jobs. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller Posts Lower Home Prices in September

September home prices fell in all cities tracked by Case-Shiller’s 20-City Home Price Index. Home prices were – 8.7 percent lower year-over-year in September than August’s reading of -10.40 percent. Home price declines showed signs of increasing after a period of rapidly rising home prices sidelined would-be home buyers.

The Federal Housing Finance Agency Home Price Index rose by 0.90 percent in September as compared to home price depreciation of -7.50 percent posted in August. Home prices rose in all 50 states and the District of Columbia between Q3 2021 and Q3 2022. States with the highest year-over-year home price growth were Florida with 22.7 percent home price growth, South Carolina with 18.4 percent home price growth, and Tennessee, where home prices rose by 17.9 percent growth. North Carolina experienced 17.4  percent growth in home prices and Georgia completed the top 5 states with the highest home price growth with 16.7 percent home price growth.

Home prices decreased in two metro areas in California; the San Francisco-San Mateo-Redwood City metro area posted a -4.3 percent decrease in home prices and the Oakland-Berkeley-Livermore metro area where home prices decreased by -0.60 percent.

Mortgage Rates, Jobless Claims

Freddie Mac reported lower mortgage rates last week as the average rate for 30-year fixed-rate mortgages decreased by nine basis points to 6.49 percent. The average rate for 15-year fixed-rate mortgages fell by 14 basis points to 5.76 percent.

225,000 new jobless claims were filed last week as compared to an expected reading of 235,000 first-time claims filed and the previous week’s reading of 241,000 new jobless claims filed. 1.61 million continuing jobless claims were filed last week as compared to 1.55 million ongoing claims filed in the previous week.

The federal government’s Non-Farm Payrolls report for November showed 263,000 public and private-sector jobs added in November; analysts expected 200,000 jobs added based on October’s reading of 284,000 jobs added. ADP reported 127,000 private-sector jobs added in November as compared to analysts’ expectations of 190,000 private–sector jobs added and September’s reading of  239,000 private-sector jobs added. The national unemployment rate was unchanged from the previous week at 3.7 percent.

What’s Ahead

This week’s scheduled economic reports include readings from the University of Michigan on consumer sentiment and consumer expectations for inflation in the next five years. Weekly readings on mortgage rates and jobless claims will also be published.

Last week’s economic reporting included readings on new home sales and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published. No economic data was published Thursday or Friday due to the Thanksgiving holiday.

New Home Sales Surpass Expectations in October

The Commerce Department reported higher-than-expected sales of new homes during October. New homes sold at a seasonally-adjusted annual pace of 632,000 homes sold.  Analysts expected new homes to sell at an annual pace of 570,000 sales as compared to the revised annual pace of 588,000 new home sales in September. The supply of available new homes rose by 1.50 percent between September and October and approached a nine-month supply of new homes for sale. Rising mortgage rates affected affordability for first-time and moderate-income home buyers, but average mortgage rates fell last week.

Mortgage Rates Fall, Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by three basis points to 6.58 percent and the average rate for 15-year fixed-rate mortgages fell by eight basis points to 5.90 percent. Homebuilders reported rising costs and slowing home sales; some builders added or increased buyer incentives including mortgage rate buydowns and paying buyers’ closing costs.

Last week’s first-time jobless claims were higher than expected with 240,000 new claims filed as compared to the expected reading of 225,000 initial claims filed and the previous week’s reading of  223,000 new jobless claims filed.

Consumer sentiment fell to an index reading of 56.8 in November according to the University of Michigan’s consumer sentiment survey. November’s reading reflected consumer concerns about inflation and a potential recession and was markedly lower than October’s index reading of 59.9 and the October 2021 reading of 73.6. Consumer sentiment about economic conditions in the next six months was also lower at an index reading of  55.6. Readings over 50 indicate that most consumers have a positive view of economic conditions.

What’s Ahead

This week’s scheduled economic news includes readings on home prices, pending home sales, and inflation. Weekly readings on mortgage rates and jobless claims will also be released.