27
Apr
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – April 27th, 2020

http://data.bloggingrightalong.com/i/07-Whats-Ahead.jpgLast week’s scheduled economic news included readings on sales of new and previously-owned homes and consumer confidence. Weekly readings on mortgage rates and new jobless claims were also released.

COVID-19 Requirements Impact Home Sales

Widespread state and local requirements for sheltering at home negatively impacted home sales in March. New homes sold at an annual pace of 627,000 sales as compared to 741,000 sales reported in February. Analysts estimated 628,000 sales for March according to the Commerce Department.

The National Association of Realtors® reported lower sales of previously-owned homes in March with an annual pace of 5.27 million sales. February’s annual sales rate was 5.76 million homes. Sales of pre-owned homes exceeded analysts’expectations of 5.24 million existing homes sold annually.

Annual sales calculated for March were 8.50 percent lower than February’s reading. Lawrence Yun, the chief economist of the National Association of Realtors®, said that the organization expected home sales to fall in March and expected fewer home sales in April.

The COVID-19 outbreak impacted both home sellers and buyers as restrictions on open houses and home tours limited sellers’ability to show their homes; prospective buyers delayed their home shopping activities due to COVID-19 restrictions and job losses related to business closures.

Mortgage Rates Mixed, Jobless Claims Lower

Freddie Mac reported higher fixed mortgage rates last week; rates for 5/1 adjustable rate mortgages dropped. The average rate for 30-year fixed-rate mortgages rose two basis points to 3.33 percent; rates for 15-year fixed-rate mortgages rose six basis points and averaged 2.86 percent. Rates for 5/1 adjustable rate mortgages fell by six basis points on average to 3.28 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims remained far above average last week but were lower than the prior week. 4.43 million initial unemployment claims were filed last week as compared to 5.24 million claims filed the prior week. Analysts expected a reading of four million new claims filed last week.

April’s Consumer Sentiment Index reading fell to an index reading of 71.8 from the March reading of 89.1 Analysts expected a reading of 69.3. The University of Michigan said that the Index reading from March to April showed the steepest drop in Index history. Analysts said that April’s reading indicated an economic recession.

What’s Ahead

This week’s scheduled economic reports include Case-Shiller Home Price Indices, pending home sales, and the post-meeting statement of the Fed’s Federal Open Market Committee. Fed Chair Jerome Powell will give a press conference after the FOMC statement. Construction spending data will be released along with weekly readings for mortgage rates and new jobless claims.

 

20
Apr
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – April 20th, 2020

What’s Ahead For Mortgage Rates This Week -March 9th, 2020Last week’s scheduled economic reporting included readings on home builder sentiment, housing starts and building permits issued. Weekly reports on mortgage rates and initial jobless claims were also released

NAHB: Homebuilder Confidence Crashes as Coronavirus Impacts Construction

Homebuilder sentiment concerning housing market conditions dropped significantly in April according to the National Association of Home Builders Housing Market Index.

April’s index reading of 30 was the largest month-to-month drop recorded since the Housing Market Index started 30 years ago. Homebuilder confidence was 42 points lower than the March reading of 72 and was the lowest reading since June 2012.

Index readings over 50 indicate that most builders are confident in current market conditions.

Sub-index readings also fell considerably in April; builder confidence in current market conditions dropped from 79 to 36. Builder confidence in housing market conditions over the next six months dipped to an index reading of 36 in April as compared to the March reading of 75.

Builder confidence in buyer traffic in new single-family housing developments dropped from an index reading of 56 in March to a reading of 13 in April; builder sentiment readings about buyer traffic don’t usually exceed an index reading of 50 but had done so in recent months. Homebuilders also said that federal assistance for builders wasn’t distributed consistently;  Builders need federal financial help to maintain payrolls and other expenses.

Commerce Department readings on housing starts and building permits issued dropped in March. Housing starts progressed at a seasonally-adjusted annual rate of 1.216 million starts as compared to February’s pace of 1.564 million housing starts.

Analysts expected a March reading of 1.290 million housing starts. Building permits issued were lower at 1.353 million permits issued as compared to 1.452 million permits issued on an annual basis in February. Analysts expected a March reading of 1.250 million building permits issued.

Mortgage Rates Near All-Time Lows as Initial Jobless Claims Slow

Freddie Mac reported mixed results for mortgage rates last week; rates for 30-year fixed-rate mortgages averaged 3.31 percent and were two basis points lower. Rates for 15-year fixed-rate mortgages averaged 2.80 percent and were three basis points higher. Rates for 5/1 adjustable-rate mortgages fell by six basis points and averaged 3.34 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.

First-time jobless claims were lower last week but remained much higher than readings reported before the COVID-19 outbreak. 5.25 million initial claims were filed, which surpassed expectations of 5 million new claims filed. 6.60 million claims were filed the prior week.

What’s Ahead

This week’s scheduled economic releases include readings on new and existing home sales, consumer sentiment and weekly reports on mortgage rates and new jobless claims.

13
Apr
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – April 13th, 2020

What's Ahead For Mortgage Rates This Week - April 13th, 2020Last week’s economic reports were limited due to closures connected with coronavirus regulations. The Federal Reserve did not issue minutes for the most recent Federal Open Market Committee meeting as the meeting was canceled.

Inflation readings were released; weekly readings on mortgage rates and new jobless claims were released along with the University of Michigan’s Consumer Sentiment Index.

Consumer Price Index Falls In March

The Consumer Price Index dropped by -0.40 percent in March; this was its biggest decline in five years. Lower inflation was largely due to falling fuel prices.

The Core Consumer Price Index, which excludes volatile food and energy sectors, fell by  -0.10 percent in March as compared to 0.10 percent growth in February.

The year-over-year inflation rate fell to 1.50 percent growth as compared to February’s year-over-year inflation rate of 2.30 percent.

Products including toilet tissue and disinfectant supplies have disappeared from many store shelves; analysts said that manufacturers of household staples use a steady approach to production and were not prepared or able to meet skyrocketing demand caused by  COVID-19.

Mortgage Rates, New Jobless Claims Little Changed

Freddie Mac reported no change in 30-year fixed mortgage rates that averaged 3.33 percent; the average rate for 15-year fixed-rate mortgages was five basis points lower at 2.77 percent. Rates for 5/1 adjustable rate mortgages were unchanged at 3.40 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 averaged 0.30 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims grew by 6.60 million claims last week; this was just shy of the previous week’s reading of 6.90 million claims filed. Before the COVID-19 outbreak, new jobless claims were typically reported in the mid-200,000 range.

The University of Michigan Consumer Sentiment Index reflected consumer concerns about the impacts of the COVID-19 outbreak. April’s index reading was 71.0 as compared to the March reading of 89.1.

What’s Ahead

This week’s scheduled economic reports include the NAHB Housing Market Index, Commerce Department readings on housing starts and building permits issued. Retail sales data will be released along with weekly reports on mortgage rates and new jobless claims.