06
Dec
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – December 6, 2021

What's Ahead For Mortgage Rates This Week - December 6, 2021Last week’s economic reports included readings on home price trends, pending home sales, labor-sector readings on public and private-sector job growth. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller: Home Price Growth Slows in September

The pace of national home price growth slowed for the first time since May 2020 in September according to S&P Case-Shiller’s National Home Price Index. Year-over-year home price growth slowed by 0.30 percent to 19.50 percent from August’s year-over-year home price growth reading of 19.80 percent. Demand for homes typically slows during fall and winter; some buyers were also sidelined by affordability concerns.

The 20-City Home Price Index for September showed some changes as Phoenix, Arizona continued to hold its top spot in the index and reported a 33.10 percent gain in home prices year-over-year. Tampa, Florida held second place with a  year-over-year home price growth rate of 27.70 percent. Miami, Florida reported a year-over-year home price growth rate of 25.20 percent. Western states have recently dominated home price growth rates, but Florida cities have surpassed former second and third-place cities San Diego, California, and Seattle, Washington.

Pending home sales of previously owned homes rose by 7.50 percent in October as compared to the expected pace of 0.70 percent and September’s reading of  2.40 percent fewer sales of homes for which purchase contracts were signed but sales were not yet completed. The surge in pending home sales was attributed to homebuyers’ haste to avoid expected higher mortgage rates and rapidly rising rents. The National Association of Realtors® noted that sales activity was higher than usual for fall, but also cautioned that the emergence of a new variation of the covid-19 virus could slow sales activity.

Mortgage Rates Little Changed as New Jobless Claims Rise

Freddie Mac reported minimal activity for mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose by one basis point to 3.11 percent. Rates for 15-year fixed-rate mortgages averaged 2.39 percent and were three basis points lower. Interest rates for 5/1 adjustable rate mortgages rose by two basis points to 2.40 percent on average. Discount points averaged 0.60 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims rose to 222,000 claims filed and fell short of the expected reading of 240,000 new claims filed. 194,000 initial jobless claims were filed during the prior week. Continuing jobless claims fell to 1.96 million ongoing claims from the prior week’s reading of 2.06 million ongoing jobless claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on job openings and quits and the University of Michigan’s preliminary Consumer Sentiment Index. Weekly readings on mortgage rates and jobless claims will also be released.

29
Nov
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – November 29, 2021

What's Ahead For Mortgage Rates This Week - November 29, 2021Last week’s economic reporting included readings on sales of new and previously-owned homes, inflation, and weekly readings on mortgage rates and jobless claims. President Biden announced his nomination of Federal Reserve chairman Jerome Powell for a second term.  Financial markets were closed Thursday and Friday for the Thanksgiving holiday.

Single-Family Home Sales Increase in October

The Commerce Department reported sales of new homes rose in October with 745,000 new homes sold on a seasonally-adjusted annual basis. October sales fell short of the 800,000 new home sales expected by analysts but surpassed September’s reading of 742,000 new homes sold.

The National Association of Realtors® reported 6.34 million previously owned homes were sold on a seasonally-adjusted annual basis in October. Sales of previously-owned homes rose by 0.80 percent from September to October and exceeded expectations of 6.20 million sales and September’s reading of 6.29 million sales of previously-owned homes. Real estate pros said that high demand for homes and strong job growth contributed to October’s reading.

Slim inventories of homes for sale and rising home prices continued to sideline some buyers; competition with cash buyers also caused difficulties for would-be buyers who relied on mortgage loans. 6.34 million pre-owned homes were sold year-over-year in October and exceeded expectations of 6.20 million sales and September’s reading of 6.29 million pre-owned homes sold.

LawrenceYun, the chief economist at the National Association of Realtors®, said,  “Inflationary pressures such as fast rising rents and increasing consumer prices may have some prospective buyers seeking the protection of a fixed consistent mortgage payment.” Rapidly rising home prices challenged would-be home buyers as the median price for a single-family home rose to $353,900 in October, which was more than 13 percent higher year-over-year. The inventory of available homes equaled September’s inventory with a 2.40  month supply of homes for sale. Real estate pros typically consider a six-month supply of homes for sale as a sign of balanced markets.

Mortgage Rates Little Changed as Jobless Claims Fall

Freddie Mac reported no change in the average rate of 3.10 percent for 30-year fixed-rate mortgages; the average rate for 15-year fixed-rate mortgages rose three basis points to 2.42 percent. The average rate for 5/1 adjustable rate mortgages fell two basis points to 2.47 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims fell to 199,000 first-time claims filed as compared to the expected reading of 260,000 new claims filed and the prior week’s reading of 270,000 first-time jobless claims filed. 2.05 million continuing jobless claims were filed as compared to 2.11 million ongoing claims filed in the prior week.

What’s Ahead

This week’s scheduled economic reporting includes readings from S&P Case-Shiller Housing Market Indices, along with reporting on pending home sales and construction spending. Public and private-sector job reports and the national unemployment rate will also be released along with weekly readings on mortgage rates and jobless claims.

22
Nov
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – November 22, 2021

What's Ahead For Mortgage Rates This Week - November 22, 2021Last week’s scheduled economic news included readings from the National Association of Home Builders on housing market conditions. Reporting on housing starts and building permits was released along with weekly reports on mortgage rates and jobless claims.

NAHB: Home Builder Confidence Grows as Demand for Homes Increases


November’s national reading for home builder confidence in housing market conditions for single-family homes rose three points to an index reading of 83 and the expected reading of 80. Component readings for the national index were mixed. Builder confidence in home sales for the next six months was unchanged at an index reading of 84. Builder confidence in potential buyer traffic in new housing developments rose three points to an index reading of 68. Readings over 50 indicate that a majority of home builders were confident about housing market conditions.

 

High demand for homes continued, but builders faced ongoing obstacles including shortages of lots and labor. Robert Dietz, the chief economist at the National Association of Home Builders, said: “ Lot availability is at multi-decade lows and the construction industry currently has more than 330,000 open positions.” Mr. Dietz urged policymakers to address these issues to enable builders to better meet the high demand for single-family homes.

 

Three of four regional readings for builder confidence in housing market conditions rose, while the Northeast’s reading fell to 69 in November from October’s reading of 73. The Midwest reading rose to 75 in November from October’s reading of 72. Homebuilder confidence in the South also rose three points to 87 in November. The Western region posted a two-point gain in builder confidence for an index reading of 87.

 

Housing starts fell by one million starts in October to 1.52 million starts on a seasonally-adjusted annual basis. Building permits issued in October rose to a pace of 1.65 million permits issued on a seasonally-adjusted annual basis. Housing starts and building permits issued do not always reflect builder confidence readings.

 

Mortgage Rates Rise as Jobless Claims Fall


Freddie Mac reported higher fixed mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose  12 basis points to 3.10 percent. Rates for 15-year fixed-rate mortgages also rose 12 basis points and averaged 2.39 percent; the average rate for 5/1 adjustable rate mortgages fell four basis points to an average rate of 2.49 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent. 

 

Initial jobless claims rose to 286,000 new claims filed from the prior week’s reading of 269,000 first-time claims filed. Ongoing jobless claims fell to 2.08 million claims filed from the prior week’s reading of 2.20 continuing jobless claims filed. 

 

What’s Ahead

This week’s scheduled economic readings include sales of new and previously-owned homes, reporting on inflation and consumer sentiment are also scheduled. Weekly readings on mortgage rates and jobless claims will be released in advance of the Thanksgiving holidays on Thursday and Friday.