What Home Buyers Need to Know for the Week of April 27, 2014
Last week’s news on housing pointed to a slow increase in existing home prices, but fewer home being sold. The U.S. Commerce Department reported that new home sales also fell to their lowest level since July 2013. March sales of existing homes dipped by 0.20 percent according to the National Association of Realtors, which translates to 4.59 million previously owned homes sold on a seasonally adjusted annual basis. Severe winter weather was cited as a possible factor in slowing home sales, but as the peak home buying season gets underway analysts forecast that some sales lost may be recovered in warmer weather.
Rising home prices was another major contributor to the slowdown in sales that began last summer and short supply of available homes, coupled with the high demand that ultimately caused some buyers to leave the market. The national average price for existing homes was $198,500 in March and represents a year-over-year increase of 7.90 percent. The median price of a new single family homes rose to $290,000 and represents a 12.60 percent increase year-over-year.
The Federal Housing Finance Agency, which governs Fannie Mae and Freddie Mac, reported that home prices for homes financed with Fannie Mae and Freddie Mac owned mortgages rose by approximately 7.0 percent year-over-year as of February.
Freddie Mac reported that average mortgage rates for fixed rate mortgages rose. The rate for a 30-year fixed rate mortgage rose by six basis points to 4.33 percent; the rate for a 15-year fixed rate mortgage also rose by six basis points to 3.39 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 3.03 percent. Discount points were also unchanged at 0.60,.60 and 0.50 percent respectively.
New jobless claims rose to 329,000 against expectations of 315,000 new jobless claims and the prior week’s reading of 305,000 new jobless claims. The Labor Department said that seasonal adjustments were incomplete due to the Easter holiday.
What’s Ahead for the Week
This week’s economic news most effecting housing includes Pending Home Sales, Case-Shiller’s Housing Market Index, U S Gross Domestic Product, FOMC Meeting and Construction Spending. The Bureau of Labor Statistics will release April’s Non-Farm Payrolls Report and National Unemployment Report on Friday.
If you’re interested in learning more about home ownership be sure to visit our local Google+ communities and Pinterest Homes for Sale boards. Here you’ll find great information from real estate agents, mortgage lenders and general contractors about neighborhoods in your city.