Daily Rate Update: November 19th-23rd

posted in: Uncategorized | 0

Wednesday – November 21, 2018

The National Association of REALTORS® reports that Existing Homes Sales rebounded in October after six straight months of declines. Existing Homes Sales rose 1.4% from September to an annual rate of 5.22 million units, just above the 5.20 million expected. However, sales were down 5.1% from October 2017. The median sales price for all housing types in October was $355,400, up 3.8% from October 2017.

There was a 4.3 month supply of existing homes on the market, up from 3.9 in October 2017. Gains were seen in the Northeast, South and West with a decline in the Midwest. Lawrence Yun, NAR’s chief economist, says increasing housing inventory has brought more buyers to the market. “After six consecutive months of decline, buyers are finally stepping back into the housing market,” he said.

Mortgage rates edged lower in the latest week due in part to lower oil prices and the volatility in the U.S. Stock markets. Freddie Mac reports that the 30-year fixed-rate mortgage fell 13 basis points this week to 4.81% with an average of 0.40 in points and fees. It was the largest weekly decline since January 2015. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – November 20, 2018

After the recent spate of sub-par housing news, October Housing Starts rose 1.5% from September to an annual rate of 1.228 million units while Building Permits beat expectations. However, single-family starts declined 1.8% from October while multi-family starts rose 6.2%. Annually, total Housing Starts were down 2.9%, single-family starts were lower by 2.6% while multi-family dwellings were off by 4.5%.

The Mortgage Bankers Association (MBA) reports that applications to purchase new homes (Builder Application Survey) fell 2.1% year over year in September though up month over month by 11% from September. The average loan size for a new home was at $332,000, the lowest since July 2017. As of October 2018, the MBA said that new single-family sales were at an annual rate of 673,000 units in October, a jump of 4.7% from the September rate of 634,000. The MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country.

Motor club AAA reports that due in part to higher wages and more disposable income, it expects 54.3 million Americans will travel 50 miles or more from their homes this Thanksgiving, the highest number recorded since 2005. Around 48 million of those travelers will be driving “over the river and through the woods” to Grandma’s house. There will be 4.7 million traveling by train, a 5% increase from 2017. The Thanksgiving holiday period is defined as Wednesday, November 21 to Sunday, November 25.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Monday – November 19, 2018

Home builder optimism declined in November due in part to higher rates and weakening demand. The NAHB Housing Market Index fell to 60 in November, down from 68 in October and below the 68 expected. It was the lowest level in more than two years. “Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La.

U.S. Stocks are lower to begin the week after the extreme volatility that has taken place over the past month. The Wall Street Journal reports that Apple has cut production orders in the past few weeks due to slowing demand for iPhones. The Apple news along with ongoing trade issues are weighing on Stocks. The U.S. capital markets will be closed on Thursday for Thanksgiving and will undergo abbreviated session on Friday.

A recent report revealed that rental prices across the U.S. fell for the second month in a row in October due in part to an overall slowdown that follows a seasonal trend, though the declines were meager. The average rental was $1,421 in October from $1,420 in September though up 3.3% year over year. The report went on to read that it sees full-year rent increases for 2018 will remain near the year-to-date figure of 3.3%.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp