What Home Buyers Need To Know for July 29th, 2013
Last week brought a mixed bag of economic news, but most notably was mortgage rates fell somewhat after their strong increase in the preceding weeks of July. Existing homes sales and Jobless Claims was the bump in the road last week but Home Prices, New Home Sales, Durable Goods and Consumer Sentiment surpassed expectations; suggesting that the economy continued to improve.
Monday: Existing home sales in June were reported at 5.08 million on a seasonally-adjusted annual basis. While this fell short of expectations of 5.25 million existing homes sold, the expectation was based on the original reading of 5.18 million existing homes sold for May; this was later revised to 5.14 million homes existing homes sold in May.
Tuesday: FHFA reported that May prices for homes with mortgages held by Fannie Mae or Freddie Mac remained consistent with April’s reading of a 7.30 percent increase on a seasonally adjusted annual basis. Home prices rose by 0.70 percent in May as compared to April’s revised reading of 0.50 percent; helping to fuel a strong need to start home shopping all across the country as the summer rolls on.
Wednesday: The U.S. Census Bureau revealed that June sales of new homes came in at 497,000, which surpassed both expectations of 483,000 new homes sold and May’s reading of 449,000 new homes sold.
Thursday: Freddie Mac reported that mortgage rates fell last week; the average rate for a 30-year fixed rate mortgage fell by six basis points to 3.31 percent with 0.8 percent in discount points. The average rate for a 15-year mortgage was 3.39 percent with discount points of 0.8 percent as compared to last week’s report of 3.41 percent. Average rates for a 5/1 adjustable rate mortgage dropped by one basis point from 3.17 percent to 3.16 percent; discount points moved from 0.60 percent to 0.70 percent.
In other economic news, June’s report for Durable Goods Orders nearly doubled to 4.20 percent over expectations of 2.30 percent.
Friday~Consumer Sentiment for July rose to 85.1 as compared to expectations of 84.0 and June’s reading of 83.90 percent. With consumers continuing to gain confidence in the economy would-be home buyers are becoming active home buyers amidst a shrinking inventory of homes.
What’s Ahead For This Week?
Several significant economic sectors release their readings this week.
Pending Home Sales came out today pointing to an expected decrease in signed contracts for existing homes in June.
Fed Chairman Ben Bernanke will also give a press conference Wednesday. Any remarks concerning projected changes to the Fed’s quantitative easing program (QE3) could impact financial markets and mortgage rates.
Friday’s news includes the monthly Non-Farm Payrolls and Unemployment report, otherwise known as the Jobs Report and data on personal income and consumer spending will round out the week’s economic news.
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