Lee Morof's Real Estate Blog

Last week’s economic news included readings on home prices from Case-Shiller; readings on construction spending and pending home sales were also released. Weekly data on mortgage rates and jobless claims were also released.

Case-Shiller Posts New Record for Home Price Growth in June

U.S. home prices continued to gain at record levels in June according to S&P Case-Shiller Home Price Indices. The National  Home Price Index rose from May’s seasonally adjusted annual reading of 16.80 percent growth to 18.60 percent year-over-year home price growth in June.

Case-Shiller’s 20-City Home Price Index reported no change in the top three cities for home price growth in June. Phoenix, Arizona, San Diego, California, and Seattle, Washington retained the top three positions in the 20-City Home Price Index. Analysts said that the current pace of home price growth isn’t sustainable. Demand for homes slowed in June as affordability sidelined would-be buyers. Less demand for homes was expected to ease home price growth and provide an additional inventory of available homes.

Pending Home Sales Slow in July as Construction Spending Increases

The National Association of Realtors® reported that pending home sales slowed in July. Pending sales are sales for which purchase offers are received but are not yet closed. Pending sales of previously-owned homes fell by -1.80 percent in July;  analysts expected pending sales to rise by 0.50 percent from June’s reading of -1.90 percent. Pending home sales fell by 8.50 percent year-over-year in July. Pending home sales provide real estate pros a compass for estimating home sales completed in the future.

Homebuilders faced with an ongoing shortage of available homes for sale increased construction spending in July. Lumber and materials prices have stabilized from earlier in 2021 and should help builders complete more homes. Shortages of buildable land and skilled labor continued to impact optimum home-building conditions.

Mortgage Rates Hold Steady as Jobless Claims Fall

Freddie Mac reported no change in rates for 30-year fixed-rate mortgages, which averaged 2.87 percent; rates for 15-year fixed- rate mortgages averaged 2.18 percent and one basis point higher than in the previous week. Rates for 5/1 adjustable rate mortgages averaged one basis point higher at 2.43 percent. Discount points averaged 0.60 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Jobless claims fell last week as 340,000 first-time claims were filed as compared to the previous week’s reading of 354,000 initial claims filed. Continuing jobless claims were also lower with 2.75 million continuing claims filed as compared to the previous week’s reading of 2.91 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reports will be limited due to the Labor Day holiday. Readings on job openings and the Federal Reserve’s Beige Book report will be released. Weekly readings on mortgage rates and jobless claims will also be published.

Last week’s economic reports included readings on new and existing home sales; the University of Michigan released its monthly Consumer Sentiment Index, and weekly updates on mortgage rates and jobless claims were also published.

New Home Sales and Median Home Price Rose in July

The Census Bureau reported that new homes sold at a seasonally-adjusted annual pace of 353,000 sales in July; analysts expected a pace of 350,000 new homes sold based on June’s reading of 349,000 sales of new homes. Homebuyers are buying new and existing homes at a faster pace as more homes and wider choices become available to would-be buyers. The number of new homes for sale rose 5.50 percent month-to-month and was 26 percent higher year-over-year. The median price for a new home rose to a new high of $390,500 in July.

The National Association of Realtors®  reported that July sales of previously-owned homes sold at a seasonally-adjusted annual pace of 5.99 million sales; analysts expected 5.87 million sales based on June’s sales pace of 5.83 million sales of previously-owned homes. Real estate pros were pleased with July’s increased sales pace and expected the trend to continue.

Mortgage Rates, Jobless Claims

Freddie Mac reported little change in average mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged one basis point higher at 2.87 percent; the average rate for 15-year fixed-rate mortgages also rose by one basis point to 2.17 percent. Rates for 5/1 adjustable rate mortgages averaged 2.42 percent and were one basis point lower. Discount points were lower across the board and averaged 0.60 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 353,000 claims filed as compared to the prior week’s reading of 349,000 first-time claims filed. Analysts expected 350,000 new jobless claims to be filed last week. Continuing jobless claims dipped to 2.86 million claims filed from the prior week’s reading of 2.87 million ongoing jobless claims filed.

The University of Michigan Consumer Sentiment Index for August ticked up to an index reading of 70.3 from July’s reading of 70.2; analysts expected an August reading of  71.0.

What’s Ahead

This week’s economic reporting included readings on Case-Shiller Home Price Indices, construction spending, and Government readings on public and private-sector jobs growth and the national unemployment rate.

Last week’s economic news included readings from the National Association of Home Builders on housing market conditions and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and jobless claims were also released.

NAHB: August Builder Confidence Fell to Lowest Level in 13 Months

Homebuilder confidence fell to its lowest level since July 2020 according to the National Association of Home Builder’s Housing Market Index for August. The HMI reading for August was 75; analysts expected a reading of 80 based on July’s index reading of 80. Readings over 50 represent positive sentiment among homebuilders surveyed. Ongoing obstacles to builder confidence included high materials costs, supply chain issues, and lack of skilled labor. Shortages of available homes and rapidly rising home prices sidelined buyers and dampened builder confidence.

Component readings of the Housing Market Index were lower in two categories as builder confidence slipped five points to an index reading of 81 for builder confidence in current market conditions and also fell five points to 60 for builder confidence in buyer traffic in new housing developments. Builder confidence in housing market conditions over the next six months was unchanged at an index reading of 81. Regional readings for builder confidence were also lower. The Midwestern region reported an index reading of 68 and was two points lower than in July. Builders in the Northeastern region reported their confidence reading slipped one point to 74. Homebuilder confidence in the South fell three points to 82; builder confidence in the West fell two points to an index reading of 85.

New home starts reflected builder hesitancy as they slipped from a seasonally-adjusted annual rate of 1.64 million starts in June to 1.53 million starts in July. Building permits rose to a seasonally-adjusted annual pace of 1.64 million permits issued in July as compared to June’s reading of 1.59 million building permits issued.

Mortgage Rates and Jobless Claims

Freddie Mac reported little change in average mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.86 percent and were one basis point lower than for the previous week. Rates for 15-year fixed-rate mortgages averaged 2.16 percent and were one basis point higher. Rates for 5/1 adjustable rate mortgages averaged one basis point lower at 2.43 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.30 percent.

Fewer jobless claims were filed last week; 348,000 new claims were filed as compared to the previous week’s reading of 377,000 initial jobless claims filed. Continuing jobless claims also dropped last week with 2.82 million ongoing claims filed as compared to the prior week’s reading of 2.90 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reports include reports on new and existing home sales, consumer spending, and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released.

Last week’s economic reporting included readings on job openings, inflation, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

Job Openings Rise as Inflation Rate Falls

The Labor Department reported a record number of job openings for the fourth consecutive month in June. Job openings rose to 10.1 million available jobs from May’s reading of 9.5 million job openings. Analysts expected job openings to decrease to 9.1 million jobs in June. 

Analysts said that previous headwinds to hiring including generous unemployment benefits and childcare issues may be easing. Workers took advantage of the rising demand for employees to negotiate higher wages and switch jobs for better offers. 

The Consumer Price Index fell by 0.40 percent in July to 0.50 percent as compared to June’s reading of 0.90 percent. The pace of year-over-year inflation remained at 5.40 percent  Core inflation, which excludes volatile food and fuel sectors, fell to 0.30 percent from 0.90 percent. July’s reading showed the impact of food and gas prices on inflation in recent months.

Mortgage Rates Rise, Jobless Claims and Consumer Sentiment Index Fall

Average mortgage rates rose last week as the rate for 30-year fixed-rate mortgages rose by 10 basis points to 2.87 percent. Rates for 15-year fixed-rate mortgages averaged 2.15 percent and were five basis points higher; rates for 5/1 adjustable rate mortgages averaged four basis points higher at 2.44 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. 

Initial jobless claims fell to 375,000 new claims filed as compared to the prior week’s reading of 387,000 first-time claims filed. Continuing jobless claims also fell; 2.87 million ongoing claims were filed last week as compared to the prior week’s reading of 2.98 million continuing jobless claims filed.

The University of Michigan reported its lowest reading for consumer sentiment since 2011. The preliminary reading for August fell to an index reading of 70.2 in August as compared to July’s reading of 81.2. Analysts expected an index reading of 81.3 for August, but rising covid 19 cases attributed to the highly contagious Delta form of the virus tanked consumer sentiment as mask requirements and social distancing guidelines re-emerged in some areas.

What’s Ahead

This week’s scheduled economic releases include readings from the National Association of Home Builders on housing markets, government readings on housing starts, and building permits issued. Retail sales will also be reported.

Last week’s economic reporting included readings on construction spending, consumer sentiment, labor sector reports on public and private sector jobs, and national unemployment. Weekly readings for mortgage rates and jobless claims were also released.

Residential Sector Drove June Construction Spending

Construction spending rose by 0.10 percent in June according to the Commerce Department. Analysts expected spending to increase by 0.50 percent, but builders spent less on public sector and non-residential projects. Spending for all construction spending rose at a year-over-year pace of $1.55 trillion. Residential construction rose by 1.10 percent in June, but public-sector spending fell by -1.20 percent and nonresidential construction spending fell by 0.70 percent. Year-over-year residential construction spending rose by 28.80 percent in June; nonresidential construction spending was 6.60 percent lower year-over-year.

Demand for homes continued to exceed the supply of available homes. Builders took advantage of lower lumber prices to ramp up construction, but shortages of affordable entry-level homes continued to challenge first-time and moderate-income home buyers. Although the covid pandemic continued to increase demand for homes, some buyers left the market due to high home prices and few options for available homes. Cash buyers and bidding wars in popular metro areas continued to drive up home prices.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week as rates for 30-year fixed-rate mortgages fell by three basis points to 2.77 percent. The average rate for 15-year fixed-rate mortgages was unchanged at 2.10 percent; Rates for 5/1 adjustable rate mortgages averaged 2.40 percent and were five basis points lower. Discount points averaged 0.60 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims fell to 385,000 initial claims filed from the previous week’s reading of 399,000 new claims filed. Ongoing jobless claims were also lower with 2.93 million continuing claims filed as compared to 3.30 million ongoing claims filed in the previous week.

Low Unemployment Rate Suggests Continued Economic Recovery

Public and private sector jobs showed mixed results in July. ADP reported 330,000 private-sector jobs added in July as compared to 680,000 private-sector jobs added in June. The Labor Department reported 943,000 public and private-sector jobs added in July as compared to its June reading of 938,000 jobs added. The national unemployment rate fell to 5.40 percent in July as compared to June’s reading of 5.90 percent. Analysts expected an unemployment rate of 5.70 percent in July. 

What’s  Ahead

This week’s scheduled economic readings include reporting on job openings, inflation, and the University of Michigan’s initial consumer sentiment index for August. Weekly readings on mortgage rates and jobless claims will also be published.

Last week’s economic reporting included readings on home prices, new and pending home sales, and the post-meeting statement of the Fed’s Federal Open Market Committee. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller Home Price Indices: Home Price Growth Breaks Records for Second Consecutive Month

National home prices grew by 16.60 percent year-over-year in May according to S&P Case-Shiller’s National Home Price Index. April’s reading reported year-over-year home price growth of 14.80 percent. Home price growth broke records for the second month in a row in May. S&P Case-Shiller’s 20-City Home Price Index reported top home price growth in Phoenix, Arizona, Seattle, Washington, and San Diego, California again held the top three positions for US home price growth.

Home price growth exceeded expectations in the months since the covid pandemic arose as homeowners and homebuyers sought to relocate to less populated areas. Demand for homes continued to exceed inventories of homes for sale; this trend has driven home prices beyond the reach of many first-time and moderate-income buyers.  While affordability issues won’t be solved overnight, some slowing in home prices growth suggested that the national housing boom was easing as demand for homes slowed. Affordability became an obstacle for homebuyers who could not compete with rapidly escalating home prices, high demand for homes, and buyers prepared to make cash offers.

New and Pending Home Sales Fall

Rapidly rising home prices and few choices among available homes caused new home sales and pending home sales to fall in June. Homebuyers were frustrated with low inventories of homes and high home prices. Pending home sales fell by 1.90 percent in June; analysts expected an increase of 0.50 percent for pending home sales. Pending home sales in May rose by 8.30 percent.

June sales of new homes fell to a year-over-year pace of  676,000 sales as compared to May’s reading of 724,000 sales of new homes. Analysts expected a year-over-year sales pace of 795,000 new homes sold.  This was the lowest pace for sales of new homes since the onset of the pandemic.

Mortgage Rates, Jobless Claims Mixed

Freddie Mac reported mixed changes in average mortgage rates last week. Rates for 30-year fixed-rate mortgages rose by two basis points to 2.80 percent, but the average rate for 15-year fixed-rate mortgages fell by two basis points to 2.10 percent. The average rate for 5/1 adjustable rate mortgages fell by four basis points to 2.45 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims fell to 400,000 first-time claims filed as compared to the previous week’s reading of 424,000 claims filed. Continuing jobless claims rose to 3.27 million ongoing claims filed last week as compared to 3.26 million ongoing jobless claims filed in the previous week.

The Federal Open Market Committee of the Federal Reserve announced that it did not raise the Federal Reserve’s key target interest rate range of 0.00 to 0.25 percent.

The University of Michigan’s Consumer Sentiment Index for July was released with an index reading of 81.2; a reading of 80.5 was expected based on June’s index reading of 80.8.

What’s Ahead

This week’s scheduled economic reporting includes readings on construction spending and labor sector readings on jobs growth and national unemployment. Weekly reporting on mortgage rates and jobless claims will also be released.

Last week’s economic reporting included readings from the National Association of Home Builders Housing Market Index, data on sales of new and previously-owned homes, and weekly reports on mortgage rates and jobless claims.

NAHB: Affordability, Shortages of Labor and Materials Impacting U.S. Housing Markets

Housing market conditions are changing according to July’s Housing Market Index produced by the National Association of Home Builders. Although the HMI reading declined by one point in July, ongoing trends including labor shortages, higher prices for building materials, and affordability impacted builder confidence in overall market conditions. July’s index reading was 80 as compared to June’s reading of 81 and the expected reading of 82. Housing Market Index readings over 50 indicate that most builders surveyed were confident about housing market conditions.

Component readings of July’s Housing Market Index included builder confidence in current market conditions, which fell one point to 86;  builder confidence in housing market conditions for the next six months rose two points to 81. Builder confidence in prospective buyer traffic in single-family housing developments fell six points to an index reading of 65. Buyer traffic readings often fell below 50 before the pandemic.

Regional builder confidence readings for housing market conditions were mixed in July. The Northeastern region’s reading was four points lower at an index reading of 75. The Midwest index reading was one point lower at 71. The builder confidence reading in the South was unchanged at 85 and the West’s builder confidence reading dropped two points to 87.

Previously-Owned Home Sales Rise in June

The National Association of Realtors® reported a seasonally adjusted annual pace of 5.86 million sales of previously-owned homes in June. Analysts expected a reading of 5.93 million sales; May’s reading for existing home sales showed an annual pace of  5.78 million homes sold.

Demand for homes since the pandemic started is driven by home buyer demand for homes in less congested suburban and rural areas. Although demand for homes encourages home builders, it also increases home prices when multiple buyers submit purchase offers on each available home. This drives home prices higher and sidelines first-time and moderate-income buyers. High-demand areas are also experiencing more cash offers, which creates difficulties for buyers needing to finance a home purchase.

Housing Starts Rise in July as Building Permits Issued Fall

U.S. housing starts rose in June according to the Census Bureau. 1.64 million starts were reported on a seasonally adjusted annual basis. 1.59 million starts were expected based on 1.55 million starts reported in May. Building permits fell to 1.60 permits issued in June; analysts expected building permits issued in June to match May’s reading of 1.68 million building permits issued.

Mortgage Rates and Jobless Claims

Freddie Mac reported lower rates for fixed-rate mortgages with 30-year fixed rates averaging 10 basis points lower at 2.78 percent. Rates for 15-year fixed-rate mortgages were also 10 basis points lower and averaged 2.12 percent. Rates for 5/1 adjustable mortgages rose two basis points on average to 2.49 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

419,000 new jobless claims were filed last week as compared to 368, 000 initial jobless claims filed in the previous week. 3.24 million continuing jobless claims were filed as compared to 3.27 million ongoing jobless claims filed in the previous week.

What’s Ahead

This week’s scheduled economic reporting includes readings on home prices from S&P Case-Shiller Home Price Indices, data on pending home sales and new home sales will be released along with the post-meeting statement of the Fed’s Federal Open Market Committee. Fed Chair Jerome Powell is scheduled to give a press conference after the FOMC statement is released. Weekly readings on mortgage rates and jobless claims will be published along with the University of Michigan’s Consumer Sentiment Index.

Last week’s scheduled economic reporting included readings from the Fed’s Federal Open Market Committee, news on changing FHA home loan requirements for borrowers with student loans, and reporting on job openings. Weekly reports on mortgage rates and jobless claims were also released.

FOMC Minutes Show Fed’s Reluctance to Raise Target Rate

The Federal Open Market Committee of the Federal Reserve released minutes of its meeting held via teleconferencing on June 15 and 16. The Committee resumed its consideration of creating “domestic and foreign repurchase agencies that would have a backdrop role in fostering implementation and support of monetary policy and smooth functioning of markets,” but no decisions were made.

 FOMC members did not change the current federal funds rate range of  0.00 to 0.25 percent and did not anticipate changing the Fed’s key interest rate range until the end of 2023. Lower jobs growth and higher inflation than expected in the near term influenced the current decision to hold on raising the Fed’s key rate, but the Committee predicted that near-term inflation will subside in the medium term.

FHA Changes Home Loan Policy on Borrowers with Student Loans

The Federal Housing Administration (FHA) announced changes to its home loan lending requirements for borrowers with student loans; the changes become effective by August 16 or sooner if lenders prefer. The changes in calculations used for determining debt-to-income ratios for borrowers with student loans will help more borrowers fall within the maximum debt-to-income ratio of 43 percent currently permitted by FHA regulations.

Mortgage Rates Fall; Jobless Claims Mixed

Freddie Mac reported record low mortgage rates last week as demand for homes continued to outstrip supplies of available homes. Steep increases in home prices continued to create affordability issues for first-time and moderate-income homebuyers.

The average rate for 30-year fixed-rate mortgages fell by eight basis points to 2.90 percent; rates for 15-year fixed-rate mortgages averaged 2.20 percent and were six basis points lower. Rates for 5/1 adjustable rate mortgages averaged 2.52 percent and were two basis points lower. Discount points averaged 0.60 percent for 30-year fixed-rate loans and 0.70 percent for 15-year fixed-rate loans. Discount points for 5/1 adjustable rate mortgages averaged 0.20 percent.

Initial jobless claims rose to 373,000 first-time claims filed as compared to 371,000 initial claims filed in the previous week. Continuing jobless claims fell to 3.34 million ongoing claims filed from the previous week’s reading of 3.48 million ongoing jobless claims filed.

Job openings held steady at 9.20 million job openings; employers continued searching for workers for open positions.

What’s Ahead

This week’s scheduled economic reporting includes readings on inflation, retail sales, and consumer sentiment.  Weekly readings on mortgage rates and jobless claims will also be released.

Last week’s economic reports included readings from S&P Case-Shiller Home Price Indices and data on pending home sales. Readings on job growth and und unemployment were also released along with weekly reports on mortgage rates and jobless claims.

S&P Case-Shiller: April Home Price Gains Reach Record Highs

Craig Lazzara, managing director and global head of investment strategy for S&P Dow Jones Indices, said that April’s year-over-year national home price growth rate of 14.60 percent was “ truly extraordinary.” All cities included in the 20-City Home Price Index posted higher home prices;  five cities including Charlotte, North Carolina, Cleveland, Ohio, and Dallas, Texas posted their highest home price gains ever along with Denver, Colorado, and Seattle, Washington.  

Phoenix, Arizona, San Diego, California, and Seattle, Washington continued to hold the top three positions for annual home price growth in the 20-City Home Price Index.

Realtors Report Increase in Pending Home Sales

Pending home sales rose by eight percent in May as compared to April. Analysts expected a one percent decrease in pending sales. Lawrence Yun, the chief economist at the National Association of Realtors®, said “May’s strong increase in transactions, as well as a sudden erosion in home affordability, was indeed a surprise. The housing market is attracting buyers b due to the decline in mortgage rates and an uptick in listings.”

Mortgage Rates, Jobless Claims Show Mixed Results

Freddie Mac reported lower average rates for fixed-rate mortgages. Rates for 30-year fixed-rate mortgages fell by four basis points to 2.98 percent; rates for 15-year fixed-rate mortgages fell by eight basis points to 2.26 percent. The average rate for 5/1 adjustable rate mortgages rose by one basis point to 2.54 percent. Discount points averaged 0.60 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-yar fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged0.30 percent.

First-time jobless claims fell to 364,000 initial claims filed from the prior week’s reading of 415,000 new claims filed. Continuing jobless claims increased with 3.47 million ongoing claims filed. ADP reported 692,000 private-sector jobs added in June; The federal Non-Farm payrolls report posted 850,000 public and private-sector jobs added as compared to 583,000 jobs added in May. The national unemployment rate ticked up to 5.90 percent in June from May’s reading of 5.80 percent unemployed.  

What’s Ahead

This week’s scheduled economic reports include the minutes from the most recent meeting of the Fed’s Federal Open Market Committee and the Labor Department’s report on job openings. Weekly readings on mortgage rates and jobless claims will also be released.

Last week’s economic reports included readings on sales of new and previously-owned homes.  Weekly readings on mortgage rates and jobless claims were also released.

New Home Sales Fall in May

New home sales dropped to their lowest reading in a year in May with 769,000 new single-family homes sold on a  seasonally adjusted annual basis.  May’s reading was 5.90 percent lower than April’s reading of 817,000 sales but was 9.20 percent higher year-over-year.

May’s decline in new home sales was caused by a 14.50 percent decrease in sales in the South; Sales rose by 33 percent in the Northeast and 4.80 percent in the West. The sales pace for new homes in the Midwest was unchanged.

Multiple factors caused fewer new home sales during what is typically a busy home-buying season. Rising costs of lumber, along with high demand for homes and affordability challenges presented obstacles to first-time and moderate-income buyers in recent months, but lumber prices fell in May. High demand for homes created opportunities for cash buyers who sidestepped making purchase offers contingent on mortgage approvals.

Analysts said that falling lumber prices will eventually provide relief for homebuyers, but short inventories of available homes coupled with high home prices continued to sideline first-time and moderate-income buyers. The median price for new homes rose to $374,000 as compared to $369,000 in April. Real estate pros reported a 5.1 month supply of available homes in May, which was the highest reading in a year.

Existing Home Sales Lower in May as Market Slows

Sales of previously-owned homes also fell in May; this was likely due to low inventories of available homes and the covid induced home-buying frenzy easing. Would-be home buyers have also left the market due to affordability challenges.

Lawrence Yun, chief economist for the National Association of Realtors® said: “Home sales fell moderately in May and are now approaching pre-pandemic activity.” Mr. Yun identified low inventories of available homes and affordability as the main obstacles facing prospective home buyers.

Mortgage Rates Rise; Jobless Claims Fall

Freddie Mac reported higher mortgage rates last week; average mortgage rates surpassed three percent for the first time in 10 weeks. Rates for 30-year fixed-rate mortgages rose nine basis points to 3.02 percent; the average rate for 15-year fixed-rate mortgages rose 10 basis points to 2.34 percent. Rates for 5/1 adjustable rate mortgages averaged 2.53 percent and were one basis point higher. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims fell to 411,000 claims filed last week as compared to the prior week’s reading of 418,000 first-time claims filed. Continuing jobless claims also fell with 3.39 million ongoing claims filed as compared to the prior week’s reading of 3.53 million continuing claims filed. 

What’s Ahead

This week’s scheduled economic news includes readings from Case-Shiller Home Price Indices, and reports on pending home sales, construction spending, and consumer confidence. Weekly readings on mortgage rates and jobless claims will also be published.