Flowers framing house

Daily Rate Update: May 26th-29th

posted in: Uncategorized | 0

Friday – May 29, 2020

Inflation has been non-existent in the past two months due to the coronavirus induced shutdown of the U.S. economy. The inflation reading Core PCE fell to 1% annually in April, down 0.5% monthly from March. Personal Spending fell by 13.6% while Personal Incomes rose 10.5%. The personal savings rate surged a record 33% as most Americans were under lock down and didn’t spend much. In addition, Personal Incomes surged boosted by government payments.

Consumer Sentiment inched higher in May as the pandemic induced shutdown began to loosen up a bit across the nation. The Consumer Sentiment Index rose to 72.3 this month from 71.8 in April. Spokesperson Richard Curtin said, ” The CARES relief checks and higher unemployment payments have helped to stem economic hardship, but those programs have not acted to stimulate discretionary spending due to uncertainty about the future course of the pandemic.” To put it into perspective, the index was at 101 in February.

Gas prices at the pumps have increased over the past month as the shutdown eases and drivers take to the road with the driving season upon us. The national average price for a regular gallon of gasoline has risen to $1.97 from $1.76 a month ago. Jeanette Casselano, AAA spokesperson said, “While motorists will see pump prices continue to increase, AAA does not expect the summer average to be as expensive as last year’s season.”

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Thursday – May 28, 2020

Just over 40 million Americans are now on the unemployment line since the shutdown began in mid-March but there is a silver lining. Weekly Initial Jobless Claims rose 2.123 million versus the 2 million expected for the week ended May 23. However, continuing claims or the number of people who have already filed an initial claim plunged by nearly 4 million. This signals that people are already finding work or getting rehired. As expected, the second reading on Q1 GDP fell 5% while Durable Orders fell 17%.

Mortgage rates continued to inch lower in the latest survey while home purchase demand picks up steam. Freddie Mac reports that the 30-year fixed-rate mortgage fell to 3.15% with 0.8 in points and fees. It was the lowest rate in the 50-year survey history. Freddie Mac went on to say that refinance activity remains elevated and low mortgage rates have been accompanied by a $70,000 decline in the average loan size of refinance borrowers this year.

Pending Home Sales fell 21.8% in April from March marking the second straight monthly decline due to the pandemic outbreak, reports the National Association of REALTORS® (NAR). The NAR said that every major region experienced a drop in month-over-month contract activity and a decline in year-over-year pending home sales transactions. Lawrence Yun, NAR’s chief economist said, “In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Wednesday – May 27, 2020

Mortgage rates continued to hover near record lows in the latest week as low rates spur on purchase activity. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage was essentially unchanged at 3.42% with 0.33 in points. The Market Composite Index, a measure of total mortgage loan application volume, rose 2.7%. The Purchase Index surged 8.6% while the Refinance Index was unchanged. “The housing market is continuing its path to recovery as various states reopen, leading to more buyers resuming their home search,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.

The U.S. stock market rally marches on today as states continue to reopen while airline and cruise shares lead the push higher. In addition, the European Union as well as Japan proposed more stimulus in the region for the coronavirus recovery which is also boosting stock prices. And from Wharton finance professor and stock market guru Jeremy Siegel … he sees the major U.S. stock indices hitting fresh new highs before the year is out due to the Fed’s support and if a second wave of coronavirus is avoided. The closely watched S&P 500 is up nearly 34% from the March 23 low when the country was essentially shut down for business.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – May 26, 2020

Sales of newly constructed single-family homes unexpectedly jumped in April though the market may not have felt the full impact from the pandemic as job losses mount. New Home Sales rose 0.6% in April from March to an annual rate of 623,000 units, well above the 485,000 expected. Sales were down 6.2% from a year ago due to the big declines seen in March. Sales were up in the Northeast, Midwest and South, with losses seen in the West. There was a 6.3 month supply of new homes for sale on the market while the median home price was $309,900 in April, down 8.6% from a year ago.

Consumer Confidence rebounded in May after two months of declines due to the outbreak of the coronavirus pandemic rising to 86.6 from 85.7 in April. Consumers’ assessment of current conditions declined further in May. Lynn Franco, Senior Director of Economic Indicators at The Conference Board said, “Following two months of rapid decline, the free-fall in Confidence stopped in May. However, consumers remain concerned about their financial prospects.”

Home prices were on the rise in March, reports the FHFA and the S&P Case Shiller 20-City Home Price Index. The FHFA reports that U.S. house prices rose 1.7% in Q1 2020, up 5.7% from Q1 2019 to Q1 2020, and up 0.1% monthly in March from February. The March S&P Case-Shiller 20-City Home Price Index rose 3.9% annually from 3.5% in February, up 0.5% from February to March.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp