Archive for Financial Reports

What’s Ahead For Mortgage Rates This Week – September 28, 2020

Posted in Financial Reports by Michigan Real Estate Expert on September 28th, 2020

 

What's Ahead For Mortgage Rates This Week - September 28, 2020Last week’s economic news included readings on new and existing home sales and Fed Chair Jerome Powell’s testimony on changing the Fed’s business loan policy. Weekly readings on mortgage rates and jobless claims were also released.

Sales of New and Pre-Owned Homes Rise In August

New homes sold at a seasonally-adjusted annual pace of 1.01 million sales; analysts expected the sales pace to fall to 900,000 sales from July’s reading of 965,000 new home sales. Homebuyers turned to new homes as the supply of pre-owned homes dwindled. Homeowners stayed put as fears over COVID-19 contagion limited sales.

Pre-owned homes sold at a seasonally-adjusted annual rate of six million homes as compared to the expected reading of 6.03 million sales and 5.86 million sales in July. Previously-owned home sales rose by 2.40 percent from July to August and were 10.50 percent higher year-over-year. The sales pace from July to August was the fastest since December 2006.

The median sales price of pre-owned homes rose to $310.600 in August and the average price for pre-owned homes was 11.40 percent higher year-over-year. Inventories of available pre-owned homes were lower than the six months supply considered average; there was a three months inventory of unsold pre-owned homes in August.

Mortgage Rates, Jobless Claims Mixed

Freddie Mac reported higher fixed mortgage rates last week as the average rate for 5/1 adjustable rate mortgages fell. 30-year fixed-rate mortgages rose three basis points on average to 2.90 percent. Rates for 15-year fixed-rate mortgages averaged 2.40 percent and were five basis points higher. The average rate for 5/1 adjustable rate mortgages was six basis points lower at 2.90 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.20 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 870,000 new claims filed from the prior week’s reading of 866.000 initial claims filed. Continuing jobless claims fell to 12.58 million ongoing claims from 12.78 million ongoing claims filed in the prior week

In other news, Fed Chair Jerome Powell testified before the House Financial Services Committee regarding the feasibility of the Federal Reserve offering smaller business loans for COVID-19 relief. The Fed’s current minimum loan amount is $250,000; Chairman Powell told the Committee that the Fed’s loan program had few requests for loans of less than $1 million. He also said that if the minimum loan amount was changed, the current lending program would have to be scrapped and restarted from scratch.

What’s Ahead

This week’s scheduled economic releases include Case-Shiller Home Price Indices,  pending home sales and reports on public and private-sector jobs, and the national unemployment rate.

 Last week’s economic news included readings on new and existing home sales and Fed Chair Jerome Powell’s
testimony on changing the Fed’s business loan policy. Weekly readings on mortgage rates and jobless claims were
also released.
Sales of New and Pre-Owned Homes Rise In August
New homes sold at a seasonally-adjusted annual pace of 1.01 million sales; analysts expected the sales pace to fall to
900,000 sales from July’s reading of 965,000 new home sales. Homebuyers turned to new homes as the supply of
pre-owned homes dwindled. Homeowners stayed put as fears over COVID-19 contagion limited sales.
Pre-owned homes sold at a seasonally-adjusted annual rate of six million homes as compared to the expected
reading of 6.03 million sales and 5.86 million sales in July. Previously-owned home sales rose by 2.40 percent from
July to August and were 10.50 percent higher year-over-year. The sales pace from July to August was the fastest
since December 2006.
The median sales price of pre-owned homes rose to $310.600 in August and the average price for pre-owned homes
was 11.40 percent higher year-over-year. Inventories of available pre-owned homes were lower than the six months
supply considered average; there was a three months inventory of unsold pre-owned homes in August.
Mortgage Rates, Jobless Claims Mixed
Freddie Mac reported higher fixed mortgage rates last week as the average rate for 5/1 adjustable rate mortgages
fell. 30-year fixed-rate mortgages rose three basis points on average to 2.90 percent. Rates for 15-year fixed-rate
mortgages averaged 2.40 percent and were five basis points higher. The average rate for 5/1 adjustable rate
mortgages was six basis points lower at 2.90 percent. Discount points averaged 0.80 percent for 30-year fixed-rate
mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.20 percent for 5/1 adjustable rate mortgages.
New jobless claims rose to 870,000 new claims filed from the prior week’s reading of 866.000 initial claims filed.
Continuing jobless claims fell to 12.58 million ongoing claims from 12.78 million ongoing claims filed in the prior
week
In other news, Fed Chair Jerome Powell testified before the House Financial Services Committee regarding the
feasibility of the Federal Reserve offering smaller business loans for COVID-19 relief. The Fed’s current minimum
loan amount is $250,000; Chairman Powell told the Committee that the Fed’s loan program had few requests for
loans of less than $1 million. He also said that if the minimum loan amount was changed, the current lending
program would have to be scrapped and restarted from scratch.
What’s Ahead
This week’s scheduled economic releases include Case-Shiller Home Price Indices, pending home sales and reports
on public and private-sector jobs, and the national unemployment 

 

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What’s Ahead For Mortgage Rates This Week – September 21, 2020

Posted in Financial Reports by Michigan Real Estate Expert on September 21st, 2020

What's Ahead For Mortgage Rates This Week - September 21, 2020Last week’s economic news included readings on housing market conditions, housing starts, building permits issued, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

National Association of Home Builders Reports Record High Builder Confidence

The NAHB reported record high builder confidence in housing market conditions. The Housing Market Index had an index reading of 83 in September as compared to August’s reading of 78. Analysts said that this builder confidence reading was notable due to rising costs for building materials.

Component readings of the NAHB Housing Market Index also rose in September. Builder confidence in current single-family housing market conditions rose four points to an index reading of 88; builder confidence in housing market conditions in the next six months rose by six points to 84. Builder confidence in buyer traffic in single-family housing developments rose by nine points to a record index reading of 73.

Builder confidence readings over 50 reflect growing builder confidence in housing market conditions. March and April fell below 50 but rebounded as demand for larger suburban homes took hold as working from home increased. Record low mortgage rates are allowing home buyers to buy larger homes with more amenities. Robert Dietz, the chief economist for the NAHB, said that “Builders in other areas of the country have reported receiving calls from customers in high-density markets asking about relocating.”

Housing Starts and Building Permits Drop in August

The Commerce Department reported 1.42 million housing starts on a seasonally-adjusted basis in August as compared to July’s reading of 1.49 million housing starts. 1.47 million building permits were issued on a seasonally-adjusted annual basis;

Mortgage Rates Mixed, Jobless Claims Fall

Freddie Mac reported mixed changes in mortgage rates; rates for 30-year fixed-rate mortgages averaged 2.87 percent and rose by one basis point. Rates for 15-year fixed-rate mortgages were two basis points lower on average at 2.35 percent. Rates for 5/1 adjustable rate mortgages averaged 2.96 percent and were 15 basis points lower. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 860,000 from the prior week’s reading of 893,000 new claims filed. Ongoing jobless claims also fell; 12.63 million were filed as compared to the prior week’s reading of 29.67 continuing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index also indicated economic growth with an index reading of 78.9 as compared to August’s reading of 74.1. Analysts expected am index reading of 75.9 for September.

What’s Ahead

This week’s scheduled economic readings include reports on new and existing home sales along with weekly reports on mortgage rates and jobless claims.

 

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What’s Ahead For Mortgage Rates This Week – September 14, 2020

Posted in Financial Reports by Michigan Real Estate Expert on September 14th, 2020

What's Ahead For Mortgage Rates This Week - September 14, 2020Last week’s economic news included readings on inflation, job openings, and weekly reports on jobless claims and mortgage rates.

Inflation Rate Slows in August

After posting 0.60 percent growth for each month in June and July, the Consumer Price Index rose by 0.40 percent in August. These growth rates offset declines in inflation during the first three months of the COVID-19  pandemic. Used vehicle prices increased after deep discounts offered when the pandemic started; analysts said that rising prices for used vehicles offset losses in previous months and produced low inflation for August.

Core inflation, which excludes volatile food and energy sectors, mirrored results for the Consumer Price Index with 0.40 percent growth in August as compared to 0.60 percent growth in consumer prices in July. Prices for items in high demand in the first months of the pandemic have stabilized as panic buying of paper goods and meat has subsided. 

July Job Openings Increase; Labor Market Remains Uncertain

617,000 jobs were added in July as compared to 600,000 jobs added in June. Hiring fell in July to a pace of 5.80 million hires as compared to nearly seven million hires in June. Job openings rose by 617,000 job openings to 6.60 million openings in July. Analysts said that seven million jobs were added per month before the pandemic.

Mortgage Rates Fall to Record Low, Jobless Claims Hold Steady

Freddie Mac reported record low fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.86 percent and were seven basis points lower. Rates for 15-year fixed-rate mortgages averaged 2.37 percent and were five basis points lower. Rates for 5/1 adjustable rate mortgages rose by 11 basis points to an average of 3.11 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.20 percent for 5/1 adjustable rate mortgages.

Initial jobless claims were unchanged from last week’s reading of 884,000 new claims filed. Continuing jobless claims rose to 13.39 million from the prior week’s reading of 13.29 million ongoing claims filed. 

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market conditions, reports on housing starts, and building permits issued The University of Michigan will issue its Consumer Sentiment Index. Weekly readings on mortgage rates and jobless claims will also be released.

 

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What’s Ahead For Mortgage Rates This Week – September 8, 2020

Posted in Financial Reports by Michigan Real Estate Expert on September 8th, 2020

What's Ahead For Mortgage Rates This Week - September 8, 2020Last week’s scheduled economic news included readings on construction spending and labor sector reports on public and private sector jobs. The national unemployment rate was also reported. Weekly readings on mortgage rates and jobless claims were also published.

July Construction Spending Rises

Construction spending rose from June’s seasonally adjusted annual pace of  $1.363 billion to $1,365 billion in July. The U.S. Census Department reports construction spending and readings are subject to adjustment. Growth in construction spending is due to a demand for homes in less congested areas.COVID-19 is creating more demand for larger homes that accommodate working from home.

Mortgage Rates Mixed as Jobless Claims Fall

Mortgage rate activity was mixed last week amid incremental changes. Freddie Mac reported that rates for 30-year fixed-rate mortgages rose two basis points to 2.93 percent; the average rate for 15-year fixed-rate mortgages fell by four basis points to 2.42 percent. Rates for 5/1 adjustable rate mortgages rose by two basis points to 2.93 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

New and continuing jobless claims fell last week. 881,000 initial jobless claims were filed last week as compared to 1.01 million first-time claims filed the prior week.13.25 million continuing jobless claims were filed last week as compared to Ongoing jobless claims were lower last week with 13.250 million claims filed as compared to 14.490 million ongoing unemployment claims filed during the prior week. Falling jobless claims indicate strengthening economic conditions as businesses reopen and employers rehire former employees and add new employees.

Jobs Growth Reports Mixed, National Unemployment Rate Falls

ADP reported 428,000  private-sector jobs added in August as compared to July’s reading of 212,000 jobs added. The Commerce Department’s Non-Farm Payrolls report showed 1.37 public and private-sector jobs.added in August as compared to 1.73 million jobs added in July. Analysts said that looming layoffs in airlines and travel sectors could slow job growth. The national unemployment rate fell to 8.40 percent in August from July’s reading of 10.20 percent.

 Based on these readings, the economy is rebounding from the impacts of COVID-19, but analysts were cautious as the three-day Labor Day weekend approached. COVID-19 cases rose after the Memorial Day and Fourth of July holidays. Increasing cases of COVID-19 could cause state and local governments to impose restrictions aimed at reducing the spread of the coronavirus. 

What’s Ahead

This week’s scheduled economic reports include reports on inflation and weekly readings on mortgage rates and jobless claims.

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What’s Ahead For Mortgage Rates This Week – August 31, 2020

Posted in Financial Reports by Michigan Real Estate Expert on August 31st, 2020

What's Ahead For Mortgage Rates This Week - August 31, 2020Last week’s economic news included readings from Case-Shiller Home Price Indices, along with data on new and pending home sales. Weekly readings on mortgage rates and new and continuing jobless claims were also published.

Case-Shiller: Home Price GrowthHolds Steady in June

National home prices grew at a seasonally-adjusted annual pace of 4.30 percent in June, which was unchanged from May’s year-over-year growth rate for home prices. The 20-City Home Price Index rose by 3.50 percent year-over-year in June.  

Phoenix, Arizona reported the leading year-over-year home price growth rate of 9.00 percent. Seattle, Washington held second place with a year-over-year home price growth rate of 6.50 percent. Home prices in Tampa, Florida grew at a year-over-year pace of 5.90 percent.   

Home price growth rates rose in five of 19 cities reported in the 20-City Index; the Wayne County Michigan metro area did not report for June’s 20-City Home Price Index. 

New Home Sales Rise as Pending Home Sales Dip in July

Sales of new homes rose for the third consecutive month in July according to the U.S. Census Bureau. July’s reading of 901,000 new homes sold on a seasonally adjusted annual basis was the highest pace of sales since 2006. Sales of new homes were 36 percent higher year-over-year. Slim inventories of pre-owned homes for sale and low mortgage rates boosted new home sales, but analysts said that builders also face headwinds including higher materials costs and affordability.

Pending home sales dropped in July from June’s year-over-year reading of 15.80 percent to July’s reading of 5.80 percent. Ongoing concerns over COVID-19, high unemployment rates and, concerns over jobs have caused would-be-homebuyers to delay their home purchase plans.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower rates for fixed-rate mortgages last week with the average rate for 30-year fixed-rate mortgages falling by eight basis points to 2.91 percent. The average rate for 15-year fixed-rate mortgages also fell by eight basis points to 2.46 percent. Rates for 5/1 adjustable rate mortgages averaged 2.91 percent and were unchanged from the prior week.

New jobless claims fell to 1.01 million claims filed from the prior week’s reading of 1.10 million initial claims filed. Continuing jobless claims were also lower with 14.54 million continuing claims filed as compared to the previous week’s reading of 14.76 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on construction spending, private and public sector jobs growth, and the national unemployment rate. Weekly reports on mortgage rates and jobless claims will also be released.

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Case-Shiller: June Home Prices Rise as Affordability Crisis Grows

Posted in Financial Reports by Michigan Real Estate Expert on August 26th, 2020

Case-Shiller: June Home Prices Rise as Affordability Crisis GrowsAccording to the National Case-Shiller Home Price Index for June, U.S. home prices rose 4.30 percent year-over-year, which was unchanged from May’s year-over-year home price growth rate. Home prices are expected to continue growing through 2020 as businesses reopen and COVID-19 restrictions ease.

Case-Shiller’s 20-City Home Price Index for May showed Phoenix, Arizona held the top spot with 9.00 percent year-over-year growth; Seattle, Washington followed with 650 percent growth in home prices. Tampa, Florida maintained its third-place position with 5.90 percent year-over-year home price growth. Five of 19 cities reporting in the 20-City Index showed a higher rate of home price growth. Wayne County, Michigan, which includes the Detroit metro area, did not provide information for June’s 20-City Home Price Index.

Craig Lazzara, managing director and global head of investment strategy at S&P Dow Jones Indices, wrote: “As has been the case for the last several months, home prices were particularly strong in the Southeast and West and were comparatively weak in the Midwest and Northeast.”

Short Supply of Single-Family Homes Continues to Fuel Rising Home Prices

Continued shortages of homes for sale and rising demand for homes caused home price gains in June. Analysts said that while low mortgage rates encouraged buyers to enter the market, overall housing market conditions did not contribute to affordable home prices. Analysts expressed concern that potential buyers were calculating affordability based on principal and interest payments and were not considering other costs of homeownership including taxes, hazard insurance, and mortgage insurance premiums that could be added to their monthly loan payments.

High home prices, COVID-19and ongoing unemployment, and decreasing growth in rental rates are obstacles to continued growth in home prices. Quarterly data published by the Federal Reserve Bank of St. Louis shows how average home prices have fallen in 2020. The national average price of a new home in the first quarter of 2020 was $383,000; in the second quarter of 2020, the average price of a new home was $368,000.

Average New Home Prices Fall in All U.S. Regions

Average regional U.S. home prices fell from the first quarter to the second quarter according to the Federal Reserve Bank of St. Louis. In the Northeast, the average price of a home fell to $622,000 from 645,200. The average price of a new home fell from $337,000 to $319,200 in the Midwest and fell from $325,300 to $315,500 in the South. The West had the highest average new home price in the second quarter of $459.900, but this was lower than the average new home price of $471,300 in the first quarter of 2020.

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What’s Ahead For Mortgage Rates This Week – August 24, 2020

Posted in Financial Reports by Michigan Real Estate Expert on August 24th, 2020

What's Ahead For Mortgage Rates This Week - August 24, 2020Last week’s economic news included readings from Case-Shiller on home prices, the National Association of Home Builders Housing Market Indices, and sales of previously-owned homes. Readings on housing starts and building permits issued were released. Weekly reports on mortgage rates, new and continuing jobless claims were also published.

NAHB: Home Builder Confidence Rises in August

The National Association of Home Builders reported that builder confidence in housing market conditions rose six points to an index reading of 78.in August. The expected reading of 73 was based on July’s reading of 72. Homebuilder confidence was based on sharp demand for homes as city dwellers sought larger homes in less dense housing metro areas.

Ongoing shortages of pre-owned homes for sale boosted builder outlook as would-be buyers turned to new homes as supplies of pre-owned homes remained low.

The National Association of Realtors® reported higher numbers of previously owned homes sold in July at a seasonally adjusted annual pace of 5.86 million sales. 5.50 million sales of previously owned homes were expected based on June’s seasonally adjusted annual pace of 4.70 million sales.

Rising home sales could indicate increasing numbers of available homes, rising confidence in the economy, and sellers putting their homes on the market for reasons including buying bigger homes or relocation for less congested living conditions.

Commerce Department Reports Rising Rates of Housing Starts and Building Permits Issued

The Commerce Department reported a jump in U.S. housing starts in July with a seasonally adjusted annual rate of 1.496 million starts as compared to an expected pace of 1.330 million housing starts and an annual pace of  1.258 million housing starts reported in June.

Mortgage Rates Rise; Jobless Claims Mixed

Freddie Mac reported higher mortgage rates last week; the average rate for 30-year fixed-rate mortgages rose three basis points to 2.99 percent. Rates for 15-year fixed-rate mortgages averaged 2.54 percent and were eight basis points higher. Interest rates for 5/1 adjustable rate mortgages averaged one basis point higher at 2.91 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.

Initial jobless claims reported by states rose to 1.11 million new claims filed last week and surpassed the expected a reading of 910,000 new claims filed based on the prior week’s reading of  971,000 initial jobless claims filed. Continuing jobless claims fell to 14.80 million ongoing claims from the prior week’s reading of 15.50 million continuing claims.

What’s Ahead

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

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What’s Ahead For Mortgage Rates This Week – August 17, 2020

Posted in Financial Reports by Michigan Real Estate Expert on August 17th, 2020

 

Last week’s scheduled economic news included readings on inflation and retail sales. Weekly reports on mortgage
rates and new and continuing jobless claims were also released. In other news, the FHFA announced an increase in
fees charged by Fannie Mae and Freddie Mac for home loan refinance transactions.
Inflation Readings Mixed as Retail Sales Fall
Consumer prices rose by 0.60 percent in July and matched June’s reading. Analysts expected a July reading of 0.40
percent growth. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose by 0.60
percent in July and exceeded June’s reading of 0.20 percent and July’s expected reading of 0.20 percent price
growth.
Retail sales dropped to 1,20 percent growth in July as compared to June’s reading of 8.40 percent growth. July’s
retail sales reading fell short of the expected rate of 2.00 percent. Retail sales excluding the automotive sector rose
by 1.90 percent in July as compared to June’s retail sales growth rate of 8.30 percent Declining retail sales were
likely caused by a resurgence in Covid-19 cases in some areas.
State and local guidance on retail re-openings varied and likely impacted retail sales according to how Covid-19
regulations were interpreted and enforced. The federal government failed to enact a second round of stimulus
payments that would have provided Americans with extra cash for purchasing retail goods and services.
Mortgage Rates Rise as Jobless Claims Fall
Freddie Mac reported higher average mortgage rates last week; rates for 30-year fixed-rate mortgages rose by eight
basis points to 2.96 percent on average. Rates for 15-year fixed-rate mortgages rose by two basis points to 2.46
percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 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 963,000 claims as compared to the prior week’s reading of 1.19 million new claims
filed and expectations of 1.08 million initial claims filed Continuing jobless claims were also lower than for the
previous week. 15.50 million ongoing jobless claims were filed last week as compared to 16.10 million claims filed
during the prior week. Falling jobless claims numbers could reflect the re-openings of business and rehiring of
employees. This progress could be short-lived as Covid-19 cases increased last week in some states where re-
opening may have been done too soon.
What’s Ahead
This week’s scheduled economic news includes readings from the National Association of Home Builders on
housing market trends, and Commerce Department reports on housing starts and building permits issued. Weekly
reports on mortgage rates and jobless claims will also be released.

What's Ahead For Mortgage Rates This Week - August 17, 2020Last week’s scheduled economic news included readings on inflation and retail sales. Weekly reports on  mortgage rates and new and continuing jobless claims were also released. In other news, the FHFA announced an increase in fees charged by Fannie Mae and Freddie Mac for home loan refinance transactions.

 Inflation Readings Mixed as Retail Sales Fall

Consumer prices rose by 0.60 percent in July and matched June’s reading. Analysts expected a July reading of 0.40 percent growth. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose by 0.60 percent in July and exceeded June’s reading of 0.20 percent and July’s expected reading of 0.20 percent price growth. 

Retail sales dropped to 1,20 percent growth in July as compared to June’s reading of 8.40 percent growth. July’s retail sales reading fell short of the expected rate of 2.00 percent. Retail sales excluding the automotive sector rose by 1.90 percent in July as compared to June’s retail sales growth rate of 8.30 percent Declining retail sales were likely caused by a resurgence in Covid-19 cases in some areas.

State and local guidance on retail re-openings varied and likely impacted retail sales according to how Covid-19 regulations were interpreted and enforced. The federal government failed to enact a second round of stimulus payments that would have provided Americans with extra cash for purchasing retail goods and services.

 

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week; rates for 30-year fixed-rate mortgages rose by eight basis points to 2.96 percent on average. Rates for 15-year fixed-rate mortgages rose by two basis points to 2.46 percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 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 963,000 claims as compared to the prior week’s reading of 1.19 million new claims filed and expectations of 1.08 million initial claims filed Continuing jobless claims were also lower than for the previous week. 15.50 million ongoing jobless claims were filed last week as compared to 16.10 million claims filed during the prior week. Falling jobless claims numbers could reflect the re-openings of business and rehiring of employees. This progress could be short-lived as Covid-19 cases increased last week in some states where re-opening may have been done too soon.

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market trends, and Commerce Department reports on housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims will also be released.

 

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What’s Ahead For Mortgage Rates This Week – August 10, 2020

Posted in Financial Reports by Michigan Real Estate Expert on August 10th, 2020

What's Ahead For Mortgage Rates This Week - August 10, 2020Economic readings released last week included construction spending, public and private-sector job growth, and government reports on initial and continuing jobless claims. Freddie Mac also released its weekly report on average mortgage rates.

Construction Spending Falls in June

Commerce Department reporting for June showed lower construction spending for the fourth consecutive month, but spending fell by -0.70 percent as compared to May’s negative reading of -1.70 percent. June’s construction spending was $1.36 million at a seasonally adjusted annual rate.

Residential construction spending fell by 1.50 percent in June as public construction spending fell by -0.70 percent. Analysts said that construction spending has held up relatively well in the pandemic as spending was up 0.10 percent year-over-year in June.

Public and Private Sector Jobs Growth Slows Sharply in July

ADP reported 167,000 private-sector jobs added in July as compared to 4.31 million jobs added in June. A resurgence in coronavirus cases contributed to the downturn, as consumers, employers and workers remained cautious and followed state and local guidelines for minimizing exposure to the Covid-19 virus. The leisure and hospitality sector led the falling private-sector jobs growth rate by adding 38,000 jobs in July as compared to approximately two million jobs in June.

The government’s Non-farm Payrolls report posted 1,76 million public and private sector jobs added in July, which surpassed the expected reading of 1.68 million jobs added but fell short of June’s reading of 4.79 million public and private sector jobs added.

The national unemployment rate decreased to 10.20 percent in July and was lower than June’s reading of 11.06 percent and the expected reading of 10.60 percent. While higher than pre-pandemic unemployment rates, July’s lower reading was good news amid overall economic hardship.

Mortgage Rates Reach Another Record Low;  Unemployment Claims Mixed

Freddie Mac reported another week of record-low mortgage rates. The rate for 30-year fixed-rate mortgages averaged 11 basis points lower at 2.88 percent. Rates for 15-year fixed-rate mortgages averaged 2.44 percent and were seven basis points lower; rates for 5/1 adjustable rate mortgages averaged four basis points lower at 2.90 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Initial state jobless claims fell to 1.19 million from the prior week’s reading of 1.44 million first-time jobless claims filed. Continuing state jobless claims were also lower than for the prior week with 16.10 million claims filed; 17.00 million ongoing jobless claims were filed the prior week.

What’s Ahead

This week’s scheduled economic reporting includes readings on inflation, retail sales, and consumer sentiment. Weekly reports on mortgage rates and new and continuing jobless claims will also be released.

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What’s Ahead For Mortgage Rates This Week – August 3, 2020

Posted in Financial Reports by Michigan Real Estate Expert on August 3rd, 2020

What's Ahead For Mortgage Rates This Week - August 3, 2020Last week’s economic reports included readings from Case-Shiller Home Price Indices, data on pending home sales, and the consumer sentiment index released by the University of Michigan. The Federal Reserve released a statement from its Federal Open Market Committee and Fed Chair Jerome Powell gave a press conference. Weekly readings on mortgage rates and expanded reports on jobless claims were also released.

Case-Shiller Home Price Readings Showed Slowing Home Price Gains in May

May readings from Case-Shiller Home Price Indices showed no decline in home prices, but the national pace of home price growth slowed to 4.50 percent from April’s national average of 4.60 percent.

The Case-Shiller 20-City Home Price Index reported slower home price growth in May with only three of 19 cities reporting higher home price growth rates than in April. Data for the Detroit, Michigan metro area was not reported. The year-over-year rate of home price growth for May’s 20-City Home Price Index was 3.70 percent as compared to April’s reading of 3.90 percent.

Phoenix, Arizona led the 20-City HPI with 9.00 percent year-over-year home price growth in May; Seattle, Washington followed with 6.80 percent year-over-year home price growth and Tampa, Florida held third place with 6.00 percent year-over-year home price growth. Analysts credited record-low mortgage rates and slim inventories of available homes with keeping home prices afloat, but the spreading coronavirus pandemic may cause home prices to lose ground as would-be home buyers postpone home purchases due to weakening economic conditions.

In related news, the National Association of Realtors® reported that pending home sales increased by 16.60 percent as compared to April’s reading of 44.30 percent growth in pending home sales. April’s reading was the highest growth rate reported for pending home sales.

FOMC Meeting: Fed Says Ongoing Assistance Needed for Consumers

The Federal Open Market Committee of the Federal Reserve left its key interest rate range of 0.00 to 0.25 percent unchanged and said it didn’t anticipate raising the rate in the next three years based on the coronavirus pandemic’s damage to the current economy and the Fed’s low to medium-term outlook. Fed Chair Jerome Powell said that given current economic indicators, it is important for the government to provide ongoing aid to American consumers.

Freddie Mac reported record low mortgage rates as the average rate for a 30-year fixed-rate mortgage fell two basis points to 2.99 percent. The average rate for 15-year fixed-rate mortgages was three basis points lower at 2.51 percent. Rates for 5/1 adjustable rate mortgages dropped by 15 basis points to 2.94 percent on average. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.40 percent.

Jobless Claims Fall, but Remain Far Above Pre-Pandemic Levels

New state jobless claims rose by 1000 claims to 1.43 million claims as ongoing state jobless claims rose to 17.29 million claims from the prior week’s reading of 16.20 million continuing jobless claims. National and state jobless claims rose by 2.04 million initial claims as compared to the prior week’s reading of 2.31 million initial claims. Continuing State and National jobless claims fell to 30.2 million claims from the previous week’s  reading of 31.80 million continuing jobless claims 

The University of Michigan reported that consumer confidence fell in July to an index reading of 72.90 percent as compared to June’s reading of 73.20.

What’s Ahead

This week’s scheduled economic reports include labor-sector reports on public and private-sector jobs, the national unemployment rate, and weekly readings on mortgage rates and new and ongoing jobless claims.

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