What Home Buyers Need To Know for October 21, 2013
Now that the shutdown is over we can resume our regular reporting on economic and housing reports effecting home buyers. The National Association of Home Builders Wells Fargo Housing Market Index for October was released Wednesday with a reading of 55, lower than the projected 58 and September’s reading was revised down to 57 from the original reading of 58, the highest measure of builder confidence since 2005. NAHB cited concerns with increasing mortgage rates and the shutdown. While the NAHB HMI reading was lower than last month, it remains in positive territory. A reading over 50 indicates that more home builders are confident about housing market conditions than those who are not. Pent-up demand for homes continues to fuel home builder confidence and increased by 34 percent over the past year.
NAHB Releases Housing Starts Data for September was unable to release data on housing starts for September, but they did release a report estimating September housing starts would be approximately 900,000 units on a seasonally-adjusted annual basis.
Fed’s Beige Book reports residential real estate improved while four districts reported slower growth. The”Beige Book” surveys 12 banking districts and eight districts reported little or no change in economic conditions.
Freddie Mac reported an increase in average mortgage rates last week. The rate for a 30-year fixed rate mortgage was 4.28 percent with discount points unchanged at 0.70 percent. A five basis point increases from the previous week. 15-year fixed rate mortgages rose by two basis points to 3.33 percent and the average rate for a 5/1 adjustable rate mortgage rose two basis points to 3.07 percent while the discount points for both 15 year mortgages and 5/1 adjustable rate mortgages remained unchanged at 0.70 percent and 0.40 percent respectively.
Weekly jobless claims reported on Thursday rose from the prior week. 358,000 new jobless claims were filed as compared to the expected number of 335,000. During the prior week, 373,000 new jobless claims were filed. The latest data was from the week of October 7, the second week the government was shut down and most likely impacted by government employees filing claims due to the Fed’s shutdown.
What‘s Ahead for the Week
Until the Feds are back up and running many agencies won’t be reporting on schedule. However as of today we can look for Nonfarm Payrolls and the Unemployment rate for September on October 22 and The University of Michigan’s Consumer Sentiment Index on October 25.
If you’re interested in learning more about home ownership in your city be sure to visit “The Home Buyer’s Korner” to the right our blog. Here you’ll find great information from local real estate agents, mortgage lenders and general contractors to assist you in your path to home ownership.