24
Jul
By First Rate Financial Group
Market Outlook

What’s Ahead For Mortgage Rates This Week – July 24th, 2023

What's Ahead For Mortgage Rates This Week - July 24 2023Last week’s economic reports included readings on U.S. housing markets, housing starts, and building permits issued. Sales data for previously-owned homes were also released along with weekly readings on mortgage rates and jobless claims

Home Builder Confidence Ticks Up in July

The National Association of Home Builders reported a one-point gain in home builder confidence with an index reading of 56 for July. Analysts predicted a reading of 57 and June’s reading was 55. Readings over 50 indicate that most home builders are confident about current  U.S. housing market conditions. Overall homebuilder confidence rose for the seventh consecutive month in July.

Component readings of the Home Builder Confidence Index were mixed as builder confidence in current housing market conditions rose by one point and builder confidence in housing market conditions over the next six months fell by two points. Buyer traffic in new home developments rose by three points. The lack of previously-owned homes for sale boosted buyer interest in new homes. Homebuilders surveyed indicated that they are not offering as many buyer incentives as they did during the pandemic.

While home builder confidence remained positive,  issues including shortages of buildable lots and slim supplies of electrical transformer equipment presented potential obstacles to builders’ positive outlook. Mortgage rates near 7 percent also presented concerns for home builders, but most prospective buyers appear to have accepted higher rates. In related news, the Commerce Department reported 1.43 million housing starts in June as compared t the expected reading of 1.48 million starts and May’s reading of 1.56 million housing starts.

Fewer building permits were issued in June with 1.43 million permits issued as compared to expectations of 1.48 million permits issued and May’s reading of 1.50 million building permits issued.

Mortgage Rates and Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week. The average rate for 30-year fixed-rate mortgages fell by 18 basis points to 6.78 percent, The average rate for 15-year fixed-rate mortgages dropped by 24 basis points to 6.06 percent.

Jobless claims fell with 228,000 first-time claims filed as compared to the previous week’s reading of 237,000 initial jobless claims filed.

What’s Ahead

This week’s economic reporting includes readings on U.S. home prices, sales of new homes, and pending home sales. The Federal Reserve will publish its decision on raising its key interest rate range. Fed Chair Jerome Powell is expected to give a press conference after the interest rate announcement. Weekly reports on mortgage rates and jobless claims will also be published.

 

05
Jun
By First Rate Financial Group
Market Outlook

What’s Ahead For Mortgage Rates This Week – June 5, 2023

What's Ahead For Mortgage Rates This Week - June 5, 2023Last week’s economic reporting included readings from S&P Case-Shiller Home Price Indices on home prices, reports on U.S. jobs growth, and the national unemployment rate. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller: Limited Supply of Available Homes Boosts Prices in March

Limited supplies of homes for sale drove home prices up in March. Home prices rose by 0.40 percent month-to-month as compared to 0.70 percent year-over-year. Cities with the highest rates of home price growth were Miami, Florida, where home prices rose 7.70 percent year-over-year, Tampa, Florida with a year-over-year pace of  4.80 percent home price growth, and Charlotte, North Carolina, where home prices rose by 4.70 percent year-over-year.

High mortgage rates impacted both home buyers and sellers as average mortgage rates approached 7 percent. Higher mortgage rates create higher monthly payments and also affect buyers’ ability to qualify for mortgage loans. Homeowners who refinanced to lower mortgage rates during the pandemic stayed in their homes rather than buying new homes or refinancing their current homes at higher interest rates.

The Commerce Department reported that construction spending rose by 7.2 percent year-over-year .and 1.2 percent month-to-month in April. Private residential construction rose by 0.50 percent in April, but single-family home construction fell by -0.8 percent.

Mortgage Rates and Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose by 22 basis points to 6.79 percent. Rates for 15-year fixed-rate mortgages rose by 21 basis points to an average rate of 6.18 percent.

232,000 new jobless claims were filed last week; analysts expected 235,000 initial claims to be filed as compared to the prior week’s reading of 230,000 initial jobless claims filed. The national unemployment rate rose to 3.7 percent in May. Analysts expected a national unemployment rate of  3.5 percent in May.

In related news, U.S. employment rose as 339,000 jobs were added in May; analysts expected a reading of 190,000 jobs added.  294,000 jobs were added in April.

What’s Ahead

This week’s scheduled economic reporting includes weekly readings on mortgage rates and jobless claims.

 

03
Oct
By First Rate Financial Group
Market Outlook, Mortgage

What’s Ahead For Mortgage Rates This Week – October 3, 2022

What's Ahead For Mortgage Rates This Week - October 3, 2022Last week’s economic news included readings on home prices, pending home sales, and inflation. The University of Michigan released its monthly reading on consumer sentiment and weekly readings on mortgage rates and jobless claims were also published.

S&P Case-Shiller Home Price Indices: Home Price Growth Slower in July

According to S&P Case-Shiller’s national reading for July home prices, home price growth slowed by -2.90 percent in July as compared to +3.00 percent growth in June. This reading supported analysts’ expectations of a cooling housing market after months of rapidly rising home prices in many areas.  The S&P Case-Shiller 20-City Home Price Index, which is a benchmark report used by real estate professionals, also posted slower home price gains for July. All 20 cities reported slower home price gains year-over-year in July.

The top three cities in the 20-city index for July with Tampa, Florida posting a year-over-year home price gain of 31.80 percent; Miami, Florida followed closely with a year-over-year home price gain of 31.70 percent and Dallas, Texas reported a year-over-year home price gain of 24.70 percent.

Mortgage rates approached seven percent last week and increased affordability concerns for would-be home buyers. Pending home sales declined by 2.00 percent in August; Analysts expected pending sales to decrease by 1.40 percent.

Mortgage Rates Rise, Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose by 41 basis points to 6.70 percent; the average rate for 15-year fixed-rate mortgages rose by 52 basis points to 5.96 percent. Rates for 5/1 adjustable rate mortgages rose by 33 basis points and averaged 5.30 percent. Discount points

for 30-year fixed-rate mortgages averaged 0.90 percent; discount points for 15-year fixed-rate mortgages averaged 1.30 percent and points for 5/1 adjustable rate mortgages averaged 0.40 percent.

Initial jobless claims fell to 193,000 claims filed as compared to the previous week’s reading of 209,000 first-time claims filed. Analysts predicted a reading of 215,000 initial jobless claims filed.

The University of Michigan’s Consumer Sentiment Index for August reported an index reading of 58.60 as compared to the expected reading of 59.50 and July’s index reading of 59.50. Decreased consumer sentiment is  related to high inflation and rising rates for mortgages and consumer credit.

What’s Ahead

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