Daily Rate Update: April 23rd-27th

posted in: Uncategorized | 0

Friday – April 27, 2018

The Bureau of Economic Analysis reported on Friday that economic growth in the first quarter of 2018 slipped from the final three months of 2017, though the number did beat estimates. The first reading on Gross Domestic Product showed a gain of 2.3%, down from the 2.9% recorded in the previous quarter, but above the 2.1% expected.

Within the report it showed that consumer spending, which makes up two-thirds of U.S. economic activity, slowed to 1.1% in the first quarter after a robust 4% gain in the previous quarter. Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. It is considered the broadest measure of economic activity.

Consumer Sentiment eased in April due in part about the effect from the tariffs on the economy which was offset by the recent tax cuts. The April Consumer Sentiment Index fell to 98.8 from 101.4 in March though the index continues to remain at elevated levels. “Overall, I still have a favorable view of how consumers are viewing the economy, though I’d like to stress again this is about as good as it gets,” said Richard Curtin, director of the University of Michigan consumer survey.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Thursday – April 26, 2018

Mortgage rates continued to edge higher in the latest week, as Bond prices declined amid a strong economic backdrop. Freddie Mac reports that the 30-year fixed-rate mortgage rose 11 basis points this week to 4.58% with an average 0.5 in points and fees. Freddie Mac went on to say that despite the higher rates, demand for home purchase credit remains solid. To put the current home loan rate environment into perspective, in 1984 the rate was nearly 14%.

Americans filing for first-time unemployment benefits fell in the latest week to levels not seen since December 1969, as the labor market is near or at full employment. The Labor Department reported that Weekly Initial Jobless Claims fell 24,000 to 209,000, below the 225,000 expected. The four-week moving average, which irons out seasonal abnormalities, fell 2,250 to 229,250 last week. The current unemployment rate of 4.1% is a 17-year low.

A spate of solid earnings reports is lifting U.S. Stocks today as the equity markets rebound from early-week losses. Taking center stage was Facebook, after the social media giant easily beat expectations in its quarterly earnings report and comes after the damage from the Cambridge Analytica headlines. Facebook now has over 1.45 billion daily users and 2.2 billion monthly users.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Wednesday – April 25, 2018 

The Mortgage Banker Association (MBA) reports that mortgage rates hit their highest level since September 2013, though they still remain historically attractive. The MBA reports that the 30-year fixed-rate mortgage jumped 7 basis points in the latest week to 4.73% with an average 0.49 point. The MBAs refinance index fell 0.3% in the latest week while the purchase index was unchanged.

U.S. Stocks are lower today as rising yields conjure up higher borrowing costs for companies to fund new projects or to pay down debt. The closely watched 10-year Treasury yield has risen to 3% this week, up from 2.75% last week. Investors have been selling safe-haven assets, such as Treasury Notes and Bonds along with Mortgage Backed Securities. As Bond prices decline, rates tend to move higher, as they have an inverse relationship.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – April 24, 2018

New Home Sales jumped in March as the spring buying season got underway, rising 4% from February to an annual rate of 694,000, a four-month high. That was above the 631,000 expected and up from the 667,000 in February (revised higher from the initial reading of 618,000). Sales were up 8.8% from March 2017. The New Home Sales report shows the number of newly constructed homes with a committed sale during the month.

However, there were considerable differences in sales around the country. In the Northeast, sales plunged 54.8%, while sales in the West soared to their highest level since December 2006, up 28.3%. New Home Sales rose 0.8% in the South and fell 2.4% in the Midwest. The median sales price of new houses sold in March 2018 was $337,200. There was a 5.2-month supply of homes for sale on the market, where a 6-month supply is considered healthy.

Home prices were on the rise in February due in part to a limited number of homes for sale on the market. The S&P/Case-Shiller 20-City Home Price Index rose 6.8% year over year from February 2017. On a month-over-month basis, prices were up 0.8% from January. The national index showed a 6.3% rise year over year. David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices says, ” With expectations for continued economic growth and further employment gains, the current run of rising prices is likely to continue.”

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Monday – April 23, 2018

The National Association of REALTORS® (NAR) reported on Monday that Existing Home Sales in March rose 1.1 percent from February to an annual rate of 5.60 million annualized units, above the 5.57 million expected. However, sales are down 1.2 percent from March 2017 due in part to continued low inventories and affordability issues. Total housing inventory was at a 3.6-month supply in March, well below the 6-month level that is considered healthy.

Within the Existing Home Sales Report, it showed that the median home price was $250,400, up 5.8 percent from March 2017. Month over month, sales rose in the Northeast and Midwest, while declines were seen in the South and West. Lawrence Yun, the NAR chief economist, said, “The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year-ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.”

Freddie Mac reported on Monday that while housing inventory is still tight, it expects the increased construction of new homes to help reduce the pressure on house price appreciation, which is currently at an annual rate of around 7%. Freddie Mac predicts that mortgage rates will average 4.6% in 2018 and 5.1% in 2019. The report went on to reveal that total home sales will hit 6.30 million in 2018 and 6.44 million in 2019. Lastly, total mortgage originations will hit $1.720 trillion in 2018, down from $1.850 trillion in 2017.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp