|For the Week Ending April 27, 2018|
This week housing has been the main focus for economic data. With a number of significant reports being released, the data for the most part, points continued strength in the housing market with little sign of demand softening.
Existing Home Sales:
Existing home sales grew for the second month in a row in March. Current sales are running at an annualized rate of 5.60 million, which is 1.1 percent higher than the previous month. Housing inventory shortages throughout the country continue to keep existing home sales below the level from the same time last year. Home affordability is beginning to become a concern for the future of the market. Currently there is more than enough pent up housing demand to keep things moving, however with interest rates continuing to rise, concern is increasing that housing demand could soften in the coming months.
S&P Corelogic Case-Shiller HPI:
The strength in home prices continues. The latest data show prices with an annualized gain of 6.3 percent for the month of December. The prior months spread was 6.1 percent, which indicates the possibility that the rate of home appreciation is accelerating. Housing inventory shortages continue to remain a significant factor in rising home prices.
Federal Housing Finance Agency House Price Index: The FHFA report shows similar findings for home prices as the Corelogic data. Home prices rose 0.6 percent in January. Although this is a slight decrease from the prior months 0.8 percent rise, the latest data shows
New Home Sales:
Sales of new homes rose in March by 4.0 percent. This increase follows February’s upwardly revised report. This latest report is consistent with the solid builder confidence reports which have been released over the last few months.
Next week’s potential market moving reports are:
• Monday April 30th – Pending Home Sales
As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.
Please enjoy this quick update on what happened this week in the housing and financial markets.
|Concerns over inflation and a spike in Treasury yields drove rates up this week. The 10-yr Treasury broke the 3% yield mark for the first time since 2014.|
|While inflation is growing domestically, lack of inflation is still a concern overseas. The ECB is continuing economic stimulus, helping to keep rates lower
|Consumer confidence rebounded in April, pointing to underlying strength in the economy. Strong confidence is likely to fuel an increase in consumer spending.|
|New home sales, which account for 11% of the housing market, increased 4% in March. That’s an 8.8% increase from a year ago, a big jump.|
|Home prices continue to surge, even as mortgage rates rise. Home values jumped 6.3% in February over the previous year, according to Case-Shiller.|
|The number of homeowners benefitting from the mortgage tax break is expected to drop by half in 2018. Only about 20% of all taxpayers have used the break
in recent years.
Anything that could possibly go wrong often does—as well as a thing or two that couldn’t possibly.
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
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