What’s Ahead For Mortgage Rates This Week – February 11th, 2019

Posted in Financial Reports by Michigan Real Estate Expert on February 11th, 2019

What’s Ahead For Mortgage Rates This Week – February 11th, 2019Last week’s economic news included Federal Reserve Chair Jerome Powell and weekly readings on mortgage rates and new jobless claims.

Fed Faced with Public Mistrust of Institutions

Federal Reserve Chair Jerome Powel said in a speech to a group of teachers that the Federal Reserve is paddling against a current of public mistrust of the institution. Mr. Powell assured his audience that the Fed was “working in a non-political way” to support the economy.

Mr. Powell said that the Fed was working to earn public trust and said that the Central Bank must be accessible to ordinary Americans and lawmakers. In support of his remarks, Chairman Powell cited three meetings he had with lawmakers and a possible meeting at the White House.

Publicity of a recent dinner with President Trump caused speculation that the Fed may be influenced by the administration. Analysts connected last Monday’s White House dinner with the Fed’s sudden reversal of its plan to raise the target range of the federal funds interest rate. Chairman Powell said that he wanted the nation’s prosperity to be widely shared; he cited “education and mobility” as key components of achieving his goal.

Mortgage Rates, New Jobless Claims

Freddie Mac reported lower mortgage rates with a decrease of five basis points across the board for the three types of mortgages it tracks. Rates for 30-year fixed rate mortgages averaged 4.41 percent, rates for 15-year fixed rate mortgages averaged 3.84 percent.

Rates for 5/1 adjustable rate mortgages averaged 3.91 percent. Last week’s mortgage rates were approximately the same as for a year ago, but analysts said that less buyer competition and more available homes this year would encourage would-be homebuyers into the market.

First-time jobless claims were lower than the prior week at 234,000 new claims filed but were higher than the expected reading of 225,000 new claims filed, which was based on the prior week’s reading of 253,000 new claims filed. The reading for the four-week rolling average of new jobless claims gained 4,500 claims for a reading of 224,750 new claims filed over the most recent four weeks. Analysts said that although the four-week average was higher, it remained near historic lows.

Whats Ahead

This week’s scheduled economic news includes readings on inflation, retail sales and consumer sentiment. Weekly readings on mortgage rates and new jobless claims are also scheduled.

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What’s Ahead For Mortgage Rates This Week – February 4th, 2019

Posted in Financial Reports by Michigan Real Estate Expert on February 4th, 2019

What’s Ahead For Mortgage Rates This Week – February 4th, 2019Last week’s economic reports included readings new and pending home sales, Case-Shiller housing market indices and consumer sentiment. Weekly reports on mortgage rates and first-time jobless claims were also released.

New Home Sales Rise as Pending Home Sales Fall

Sales of new homes rose 17 percent in November for an eight-month high. Year-to-date sales of new homes were only 2.70 percent higher than for the same period in 2018.New home sales rose to 657,000 sales as compared to expectations of 563,000 sales and November’s reading of 562,000 sales. Analysts cautioned that Commerce Department readings for new home sales are prepared from a slim sampling of sales and are subject to volatility.

Pending home sales slumped in December to a negative reading of -2.20 percent as compared to November’s seasonally-adjusted annual reading of -0.90 percent. Analysts said the dip was likely caused by consumer concerns over the government shutdown and potential future shutdowns.

December’s reading was the twelfth consecutive negative month-to-month reading. Real estate pros and analysts cited ongoing challenges including high home prices and mortgage rates as contributing to fewer contract signings.

In related news, the Federal Reserve’s Federal Open Market Committee elected not to raise the Fed’s target federal funds interest rate range, which is currently 2.25 to 2.50 percent. Domestic and global economic concerns led committee members to pause interest rate hikes.

Case-Shiller reported lower home price growth in November with a year-over-year annual reading of 5.20 percent growth. Las Vegas, Nevada, Seattle Washington and Denver Colorado held the top three spots on the Case-Shiller 20-City Home Price Index.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported slightly higher average mortgage rates last week; 30-year fixed mortgage rates averaged 4.46 percent and were one basis point higher than for the prior week. 15-year fixed mortgage rates averaged 3.89 percent and were also one basis point higher.

The average rate for 5/1 adjustable rate mortgages was six basis points higher at 3.96 percent. Discount points averaged 0;50 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.

First-time jobless claims surged last week to 253,000 new claims filed. Analysts attributed the spike in new jobless claims to seasonal quirks that were not expected to last. The four-week rolling average of new jobless claims is considered less volatile and rose by 5,000 new claims to 222,250 initial claims filed.

The University of Michigan released its Consumer Sentiment Index last week; the January index reading of 91.20 was higher than the expected reading of 90.70 but was the lowest since President Trump’s election. December’s index reading was 98.30; analysts blamed the government shutdown on the sudden dip in consumer confidence.

Whats Ahead

This week’s economic news includes the President’s State of the Union speech and speeches by Fed Chairman Jerome Powell. Weekly reports on mortgage rates and new jobless claims will also be released.

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What’s Ahead For Mortgage Rates This Week – January 28th, 2019

Posted in Financial Reports by Michigan Real Estate Expert on January 28th, 2019

What’s Ahead For Mortgage Rates This Week – January 28th, 2019Last week’s economic news included readings on sales of previously owned homes and weekly readings on average mortgage rates and new jobless claims. A scheduled report on sales of new homes was not available due to the government shutdown.

National Association of Realtors®: Sales of Pre-Owned Homes Lowest in 3 Years

Sales of previously owned homes fell in December and failed to meet expectations. 4.99 million pre-owned homes were sold on a seasonally-adjusted annual basis; analysts predicted 5.10 million sales based on 5.33 million sales in November 2018. December’s reading showed the lowest number of sales since November of 2015.

Sales of previously-owned homes fell 6.40 percent month-to-month and were 10.30 percent lower year-over-year. Inventories of previously-owned homes also slipped in December with a 3.70 months supply of homes as compared to 3.90 months supply of available homes in November. Real estate pros consider six months supply of homes for sale as an average inventor.

Real estate pros said that lower buyer traffic in all regions of the U.S. could indicate less interest from buyers, but on a positive note, fewer buyers also remove the high rates of competition seen in the recent past.

Lower mortgage rates are well-timed for the upcoming spring sales season. Real estate pros were hopeful that lower mortgage rates will hold and entice more buyers into the market.

Mortgage Rates Mixed, New Jobless Claims

Freddie Mac reported no change in average interest rates for fixed rate mortgages. The average rate for 30-year fixed rate mortgages held at 4.45 percent; the average rate for a 15-year fixed rate mortgage was also unchanged at 3.88 percent. Rates for 5/1 adjustable rate mortgages averaged three basis points higher at 3.90 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 199,000 new claims filed. Analysts expected 218,000 new claims to be filed based on the prior week’s reading of 212,000 new claims filed. Last week’s reading represented the first time since 1969 that new jobless claims fell below 200,000, but analysts were wary of potential impact of the government shutdown on new jobless claims. The shutdown ended on Friday until February 15, but politicians seemed unenthusiastic about future shutdowns.

Whats Ahead

This week’s scheduled economic reports include Case-Shiller Home Price Indices and readings on pending home sales, construction spending and the post-meeting statement from the Federal Reserve’s Federal Open Market Committee.

Labor sector readings on private and public employment and the national unemployment rate will also be released. Weekly readings on mortgage rates and new jobless claims will be released on schedule.

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What’s Ahead For Mortgage Rates This Week – January 14th, 2019

Posted in Financial Reports by Michigan Real Estate Expert on January 14th, 2019

What’s Ahead For Mortgage Rates This Week – January 14th, 2019Last week’s economic reports included remarks by Federal Reserve Chair Jerome Powell, readings on inflation and core inflation. Weekly readings on mortgage rates and first-tome jobless claims were also released. If the government shutdown continues, it is expected to impact release dates for readings from federal government agencies.

Federal Reserve Watches and Waits on Interest Rates as Inflation Slows

Fed Chair Jerome Powell said that the Federal Open Market Committee of the Federal Reserve will “wait and see” about raising the target federal funds rate this year. Chairman Powell spoke at a discussion hosed by the Economic Club of Washington, D.C. Mr. Powell clarified the Fed’s estimate of two rate hikes during 2019 and said that the predicted two rate hikes would occur based on “a very strong economic outlook for 2019.”

Faltering financial markets and slower rates of home price growth caused the Fed to dial back it’s bullish outlook and instead emphasize that Fed monetary policy is flexible and could be adjusted quickly adjusted as changing economic conditions merit.

Mortgage Rates and New Jobless Claims Fall

Freddie Mac reported lower average mortgage rates for 30-year fixed rate mortgages fell six basis points to 4.45 percent; rates for 15-year fixed rate mortgages fell 10 basis points to 3.89 percent.

The average rate for 5/1 adjustable rate e mortgages was 15 basis points lower at 3.85 percent Discount rates averaged 0.50 percent for 30-year fixed rate mortgages, points for 15-year fixed rate mortgages averaged 0.40 percent and discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.

First-time jobless claims fell by 15,000 claims to 216,000 new claims filed. Analysts expected 227,000 new claims based on the prior week’s reading of 231,000 new claims filed.

December’s Consumer Price Index was – 0.10 percent lower than for November, which matched expectations based on November’s positive inflation rate reading of + 0.10 percent. Slowing inflation could indicate slower economic growth; a consistent pattern of sluggish inflation may cause the Fed to hold steady on raising its key interest rate.

Whats Ahead

This week’s scheduled economic news includes readings on the National Association of Homebuilders Housing Market Index, Commerce Department readings on housing starts and building permits issued. The Consumer Sentiment Index is also scheduled for release. Weekly readings on mortgage rates and initial jobless claims will be released on schedule.

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What’s Ahead For Mortgage Rates This Week – January 7th, 2019

Posted in Financial Reports by Michigan Real Estate Expert on January 7th, 2019

What’s Ahead For Mortgage Rates This Week – January 7th, 2019Last week’s economic reports included Labor Department readings on private and public sector jobs, the national unemployment rate. Weekly readings on mortgage rates and first-time jobless claims were also released. Monthly reporting on construction spending was delayed due to the government shutdown.

Public and Private-Sector Jobs Growth Exceeds Expectations

ADP reported 271private sector jobs added in December as compared to 157,000 jobs added in November. Analysts expected 182,000 jobs added for December and said that December’s reading was the highest number of jobs added in almost two years. Large companies added 54,000 jobs, medium sized companies added 129,000 jobs and small companies added 89,000 private-sector jobs.

The Bureau of Labor Statistics reported 312,0000 public and private-sector jobs were added in December, which was more than double November’s reading of 176,000 public and private-sector jobs added. Analysts predicted 182,000 new jobs added for December.

In related news, the national unemployment rose to 3.90 percent from November’s level of 3.70 percent. While the unemployment rate was expected to dip to 3.60 percent, it rose due to more workers seeking jobs. Unemployment rates are determined as a percentage of workers actively seeking employment. A larger pool of people seeking work suggested expanding job opportunities.

Mortgage Rates Fall as New Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week as rates for fixed rate mortgage were four basis points lower at 4.51 percent; rates for 15-year fixed rate mortgages averaged 3.99 percent and rates for 5/1 adjustable rate mortgages averaged two basis points lower at 3.99 percent. Discount points averaged 0.40 percent for 30-year fixed rate mortgages, 0.30 percent for 15-year fixed rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

In remarks made at the American Economic Association, current Fed Chair Jerome Powell joined former Fed Chairs Janet Yellen and Ben Bernanke to comment about the economy in 2018 and emphasized that Fed policy would be adjusted quickly and flexibly” if economic conditions warrant. All three Fed Chairs expected a slowing of economic growth in 2019, but their overall outlook was positive.

First-time jobless claims rose by 10,000 new claims to 231,000 first-time claims filed. Expectations of 218,000 new claims filed were based on the prior weeks reading of 221,000 new claims filed. The increase in new claims filed was caused in part by holiday season fluctuations and more people actively seeking jobs. Unemployed workers must be actively seeking work to qualify for unemployment benefits.

Whats Ahead

This week’s scheduled economic reports include readings on job openings, minutes of the December meeting of the Fed’s Federal Open Market Committee, and inflation. Weekly readings on mortgage rates and new jobless claims will also be released.

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What’s Ahead For Mortgage Rates This Week – December 31st, 2018

Posted in Financial Reports by Michigan Real Estate Expert on December 31st, 2018

What’s Ahead For Mortgage Rates This Week – December 31st, 2018Last week’s economic reports included readings from Case-Shiller Housing Market Indices, National Association of Realtors® on pending home sales and weekly readings on mortgage rates and new jobless claims.  

The Commerce Department’s reading on sales of new homes was delayed due to the federal government’s shutdown.

Case-Shiller: Home Price Growth Lowest in Two Years

Home price growth was nearly nil with October’s month-to-month reading of 0.40 percent; The Case-Shiller 20-City Home Price Index showed a year-over-year home price growth rate of 5.50 percent, which matched September’s year-over-year reading. Las Vegas, Nevada led home price growth in the 20-city index with a year-over-year increase of 12,80 percent; San Francisco, California had home price growth of 7,90 percent and Phoenix, Arizona home prices grew by 7.70 percent year-over-year in October.

While San Francisco, California, Seattle, Washington and Portland, Oregon dominated the top three spots in the 20-City Home Price Index in recent years, the latest home price growth rates indicate that the West Coast may be easing off on its rapid home price gains. High-cost metro areas risk reaching a tipping point when there are few properties available with very high prices and buyers competing.

,Affordability and slim choice of available homes can cause would-be buyers to sideline themselves while they await more options and lower prices. Rising mortgage rates caused concern among buyers concerned with affordability and qualifying for mortgage loans under strict lender requirements.

Pending Home Sales Improve, But Remain in Negative Territory

Future home sales slipped in November, but less so than they did in October. Pending sales registered in negative territory with a reading of -0.70 percent in November as compared to October’s reading of -2.60 percent.

Analysts and real estate pros view pending sales as an indication of future completed sales and mortgage activity; falling numbers for pending home sales suggest slowing home sales that could impact housing markets. Pending sales are considered sales for which purchase contracts have been signed, but that have not closed.

Mortgage Rates, New Jobless Claims

Freddie Mac reported lower averaged fixed mortgage rates with the rate for a 30-year fixed rate mortgage lower by seven basis points at 4.55 percent. The average rate for a 15-year fixed rate mortgage fell by six basis points to 4.01 percent and the average rate for a 5/1 adjustable rate mortgage rose two basis points to 4.00 percent. Falling mortgage rates could induce discouraged home buyers to look for homes again.

First-time jobless claims dropped by 1000 claims to 216,000 new claims filed. Analysts predicted a reading of 217,000 mew claims filed, which was unchanged from the prior week’s reading.

Whats Ahead

This week’s scheduled economic reports include readings on construction spending, non-farm payrolls and the national unemployment rate. Weekly reports on mortgage rates and first-time unemployment claims are also scheduled. Please note that some scheduled readings could be delayed due to the federal government shut-down.

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What’s Ahead For Mortgage Rates This Week – December 24th, 2018

Posted in Financial Reports by Michigan Real Estate Expert on December 24th, 2018

What’s Ahead For Mortgage Rates This Week – December 24th, 2018Last week’s economic news included readings from the National Association of Home Builders, Commerce Department readings on housing starts and National Association of Realtors® report on sales of previously-owned homes. Weekly reports on mortgage rates and first-time jobless claims were also released.

NAHB: Home Builders Lose Confidence as Housing Crunch Continues

Homebuilder confidence fell to a 36 month low in December as homebuilder concerns over rising home prices, high mortgage rates and decreasing inventories of available homes sidelined home buyers. The NAHB Housing Market Index fell four points to 56.

Components of the Housing Market Index reading also fell as builder confidence in current market conditions fell six points to an index reading of 61; builder confidence in new home sales over the next six months fell by four points to a reading of 61. Builder confidence in buyer traffic in new home developments dipped two points to 43.

While any reading over 50 is considered positive, buyer traffic readings under 50 are not unusual.

Analysts and real estate pros often consider the Home Builders Housing Market Index as an indicator of future new home construction and sales. Rising home prices and mortgage rates were cited as reasons contributing to the drop in home builder confidence.

Existing Home Sales, Housing Starts and Building Permits Issued Rise in November

Sales of pre-owned homes rose in November with 5.32 million sales reported on an annual seasonally adjusted basis. Analysts expected a reading of 5.17 million sales based on October’s sales pace of 5.22 million sales.

Three out of four regions reported gains in sales of pre-owned homes. The Northeast reported a gain of 7.20 percent; the Midwest reported a year-over-year gain of 5.50 percent and sales of pre-owned homes were 2.50 percent higher in the South. The West lost traction in existing home sales with a negative reading of -6.30 percent. Known for high home prices, it may be that home prices have peaked in the West.

The Commerce Department reported housing starts at the rate of 1.25 million in November; analysts predicted a rate of 1.230 million starts based on October’s reading of 1.217 million starts. November building permits rose to 1.328 million permits issued as compared to a reading of 1.265 million permits issued in October.

Analysts said that more apartment homes were being built; this trend could be a further indication of home prices being out of reach for would-be home buyers.

Mortgage Rates, New Jobless Claims Dip

Freddie Mac reported lower mortgage rates last week; 30-year fixed mortgage rates averaged 4.62 percent and were one basis point lower than in the prior week.  15-year fixed mortgage rates were unchanged at an average of 4.07 percent.

The average rate for 5/1 adjustable rate mortgages was six basis points lower at 3.98 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell last week to 206,000 claims filed. Analysts predicted 218,000 new jobless claims based on the prior week’s reading of 206,000 new unemployment claims filed.

Whats Ahead

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

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What’s Ahead For Mortgage Rates This Week – December 10th, 2018

Posted in Financial Reports by Michigan Real Estate Expert on December 10th, 2018

What's Ahead For Mortgage Rates This Week - December 10th, 2018Last week’s economic reports included readings on construction spending and Labor Department readings on private and public jobs growth. The Consumer Sentiment Index was released along with weekly readings on mortgage rates and new jobless claims.

Construction Spending Slows in October

Residential construction slowed in last month as public works projects increased. Private sector construction spending fell by -0.10 percent as compared to expected growth of 0.30 percent and last month’s negative reading of -0.10 percent.

Construction spending for October was $1.309 billion on a seasonally adjusted annual basis as compared to September’s revised reading of $1.311 billion. Overall construction spending was 4.90 percent year-over-year.

Homebuilders continued to be wary of tariffs on building materials and cited high labor costs and a shortage of buildable lots. Winter weather also slows construction in many areas of the U.S.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week. Mortgage rates for a 30-year fixed rate mortgage fell by six basis points to 4.75 percent; rates for 15-year fixed rate mortgages were four basis points lower at 4.21 percent on average.

Rates for 5/1 adjustable rate mortgages averaged five basis points lower at 4.07 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate mortgages. 5/1 adjustable rates had average discount points of 0/30 percent.

First-tome jobless claims were lower last week with 231,000 new claims filed as compared to an expected reading of 224,000 new claims filed and the prior week’s reading of 236,000 new jobless claims filed.

Labor Department: Slower Jobs Growth in Public, Private Sectors

The Bureau of Labor Statistics reported fewer jobs added to Non-Farm Payrolls in November. 155,0000 public and private sector jobs were added as compared to expectations of 190,000 jobs added and October’s reading of 237,000 new jobs added. ADP reported 179,000 private sector jobs added in November as compared to 225,000 jobs added in October. The national unemployment held steady at 3.70 percent.

Consumer sentiment was unchanged in November with an index reading of 97.50 according to the University of Michigan’s Consumer Sentiment Index.

Whats Ahead

This week’s scheduled economic releases include readings on inflation, retail sales and weekly reports on mortgage rates and first-time jobless claims.

 

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What’s Ahead For Mortgage Rates This Week – December 3rd, 2018

Posted in Financial Reports by Michigan Real Estate Expert on December 3rd, 2018

What’s Ahead For Mortgage Rates This Week – December 3rd, 2018Last week’s economic news included readings from Case-Shiller Home Price Indices, sales of new homes and pending home sales. FHFA increased maximum loan limits permitted for mortgages held or guaranteed by Fannie Mae and Freddie Mac. Weekly readings for mortgage rates and first-time jobless claims were also released.

Case-Shiller Indicates Slow-Down in Home Price Growth

Home prices slowed their growth in September according to Case-Shiller. David Blitzer, CEO and Chairman of S & P Dow Jones Indices, said “Home prices plus data on house sales and construction confirm the slowdown in housing.

Rapidly rising home prices have sidelined new and moderate-income home buyers; slim inventories of homes for sale and recently rising mortgage rates also squeezed options for home buyers.

Home prices grew at a seasonally-adjusted annual rate of 5.70 percent in September as compared to 5.70 percent during August. September’s reading was the lowest in nearly two years, but remains close to twice the growth rate for wages.

Las Vegas, Nevada held first place for home price growth with a seasonally-adjusted annual growth rate of 13.50 percent. San Francisco, California followed with a year-over-year growth reading of 9.90 percent. Seattle, Washington held third place for home price growth with a year-over-year reading of 8.40 percent.

New and Pending Home Sales Dip in October

The Commerce Department reported s fewer sales of newly-built home in October to 544,000 sales as compared to September’s reading of 597,000 sales of new homes. Analysts predicted a reading of 589,000 sales for October. Home sales slow as winter weather and holidays approach, but higher mortgage rates also caused the dip in sales.

Pending home sales are sales where a purchase offer is made, but the sale of a home has not closed. Pending home sales were -2.60 percent lower in October as compared to 0.70 percent growth in September. The National Association of Realtors® reported an October index reading of 102.1 as compared to September’s reading of 104.8 in September, which represented a 2.60 percent decline in contract signings. This was the lowest reading for contract signings since June 2014.

Mortgage Rates, Higher Loan Limits and New Jobless Claims

Freddie Mac reported mixed results for average mortgage rates; Rates for 30-year fixed rate mortgages were unchanged at an average of 4.81 percent; rates for a 15-year fixed rate mortgage averaged one basis point higher at 4.25 percent and the average rate for 5/1 adjustable rate mortgages was three basis points lower at 4.12 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.

The Federal Housing Finance Agency announced higher loan limits for home loans owned or guaranteed by Fannie Mae and Freddie Mac. The maximum loan amount for conforming mortgages was raised 6.90 percent to $484,350. The maximum loan amount for mortgages in high priced counties will be based on 150 percent of the $484,300, which is $726,525.00.

New jobless claims were higher last week with 234,000 new claims filed. Analysts expected 220,000 new claims based on the prior week’s reading of 224,000 first-time claims filed.

Whats Ahead

This week’s economic news releases include readings on construction spending and labor sector reports on public and private sector job growth. The national unemployment rate will be released along with weekly readings on mortgage rates and first-time jobless claims.

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What’s Ahead For Mortgage Rates This Week – November 26th, 2018

Posted in Financial Reports by Michigan Real Estate Expert on November 26th, 2018

What’s Ahead For Mortgage Rates This Week – November 26th, 2018Last week’s economic readings included readings from the National Association of Home Builders Housing Market Index, National Association of Realtors® report on sales of pre-owned homes and Commerce Department readings on housing starts and building permits issued. Weekly reports on mortgage rates and first-time jobless claims were also released.

Housing Market Challenges Catch Up to Builder Sentiment

According to the National Association of Home Builders, overall builder sentiment fell six points to November’s reading of 60. This was the largest decline in builder sentiment since 2016. Ongoing concerns over lot and labor shortages and rising costs of building materials were cited along with recently rising mortgage rates.

Demand for homes eased as potential buyers were sidelined by rising rates, shortages of homes for sale and approaching winter weather and holidays. Any Housing Market Index reading over 50 is considered positive, but steep drops in builder sentiment is considered a predictor of stabilizing market conditions.

National Association of Realtors®: Sales of Pre-Owned Home Sales Rise in October

Sales of previously-owned homes rose in October to a seasonally-adjusted annual rate of 5.22 million sales as compared to September’s reading of 5.15 million sales. Analysts estimated a reading of 5.18 million sales. While this reading suggests that buyers are active, an increase in home sales signals easing demand as compared to recent months when many buyers were sidelined due to extreme buyer competition for short inventories of homes for sale.

Mortgage Rates First-Time Jobless Claims Fall as New Jobless Claims Rise

Freddie Mac reported lower mortgage rates last week; rates for 30-year fixed rate mortgages averaged 4.81 percent, which was 13 basis points lower than the previous week. Rates for 15-year fixed rate mortgages averaged 4.24 percent and were 12 basis points lower.

Rates for 5/1 adjustable rate mortgages averaged 4.09 percent and were five basis points lower. Discount points averaged 0.40 percent for 30-year fixed rate mortgages, 0.50 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 224,000 new claims filed as compared to expectations of 215,000 claims. The prior week’s reading was 221,000 new claims filed.

Whats Ahead

Economic readings set for release this week include Case-Shiller home price indices, new home sales and pending home sales. Weekly readings on mortgage rates and new jobless claims will also be released.

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