The Home Buyer's Korner

Information presented should be used for educational purposes only.

January 11th, 2016

Guy looking up in color

What Home Buyers Need to Know for the Week of Jan 14, 2016

Network Membership

As we moved in our first full week of 2016 few reports on housing or mortgage related news was reported. We did, however, get data on Construction Spending and some labor reports.

Both of these sectors in our economy have profound impacts on housing. Construction Spending provides indications of future housing supply, as well as Builder Confidence. Data coming for the labor markets give us a sense of economic conditions overall and how those factors influence would-be home buyers.

In the report released by the Commerce Department, construction spending dropped by 0.40 percent in November to a seasonally adjusted annual reading of $1.12 trillion. November’s reading was short of the expected reading of 0.90 percent, which was based on October’s original reading of a 1.00 percent increase in construction spending. October’s reading was later revised downward to 0.30 percent. Even with the unexpected decline, November’s construction spending was 10.50 percent higher year-over-year.

Private construction spending decreased by 0.20 percent in November, but it’s up 12.10 percent year-over-year. That’s good news, considering that the housing markets have been hard squeezed due to short supplies of available homes. New construction of affordable housing is a key factor to ease the shortage and should motivate would-be home buyers to stop renting and taking advantage of many of the great opportunities out there to purchase a home.

Fortunately, residential construction was up 0.30 percent in November and increased 10.80 percent year-over-year, but we are still well off our peaks before the housing bust in 2007.

According to the Labor Department, 292,000 new jobs were added in December, which resulted in the fifth consecutive year where jobs grew by 2 million or more year-over-year! Upward revisions to the jobs reports for October and November supported stronger economic conditions. October’s reading was adjusted from 298,000 new jobs to 307,000 new jobs; November’s original reading for new jobs was raised from the 211,000 jobs added to 252.000 jobs added.

Last week’s positive jobs reports were released against the turmoil in the Chinese market and concerns the China’s economy is slowing. As the second largest global economy, China’s economy could influence global financial markets and economic conditions if it experiences serious difficulties.

New weekly jobless claims fell to 277,000 as compared to expectations of 275.000 and the prior week’s reading of 287,000 first-time claims. Fewer first-time claims for jobless benefits point to stronger economic conditions in general as evidenced by expanding job markets. National unemployment held steady 5.00 percent, which met expectations and the same as November’s reading.

pmms_chart (6)

Freddie Mac’s survey of lenders and interest rates were mixed. The average rate for a 30-year fixed rate mortgage dropped four basis points to 3.97 percent; the average rate for a 15-year fixed rate mortgage rose two basis points to 3.26 percent and the average rate for a 5/1 adjustable rate mortgage rose by one basis point to 3.09 percent. Last week’s discount points averaged 0.60 percent for 30-year fixed rate mortgages, 0.50 percent for 15 year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

What’s Ahead for the Week?

This week we’ll get economic reports that include job openings, retail sales the Federal Reserve’s Beige Book report, Freddie Mac’s Lender Interest Rate Survey, New Jobless Claims, and Consumer Sentiment.

HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Your Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Your Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document, click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”.  In the center of the screen you will have the option to

“Create A Printable PDF of the Presentation”.

JOIN OUR REAL ESTATE SOCIAL MEDIA NETWORK

TWTT

The Home Buyer's Korner

Real Estate Marketing Blogs and Coaching

Mortgage Lenders Social Media Marketing Blogs

General Contractors Renovation Network

LINKEDIN

Twitter

PINTEREST

Facebook Group 2

The Home Buyer's Korner Fan page

Facebook Fan Page Honolulu

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-Ops Townhomes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance Hazard and Flood Insurance