It’s been a rough week…and your market update.

It’s been a rough week…and your market update.

This week started off rough for me. I had to put down one of my sweet little dogs. He was almost 13 years old, and he had a good life, but nevertheless, it was a horrible experience.

He was struggling with health issues for a while, but still very happy and playful. He followed me everywhere, always. I still find myself looking for him at my feet. I miss him terribly, but happy to know he is not in pain anymore.

Here’s a pic of the little guy (on the right). His girlfriend is still with us. 🙂

dogs2

 

Have a great weekend!

Onto the market update…

 New Home Sales:  The new home market is solid, however it does not seem to be growing based upon the latest Housing Market Index report.  Home builders are enjoying a great buyer’s market with a rating of a very strong 64.  Optimism for future sales declined slightly from 69, down to 66.   The only concern in the latest report is the weakness in buyer traffic.  It appears that first time homebuyers remain noticeably absent from the new home purchase market.

The West continues to lead the country in new construction followed by the southern region.  The Midwest remains healthy in the building of new homes and the Northeast, as usual, continues to lag way behind.

Mortgage Rates:  It’s amazing just how sensitive buyers and existing home owners are to mortgage rates.  With the slight uptick in rates last week, mortgage applications declined. Although the drops are small, it is still a change in direction and an illustration of just how close borrowers are watching mortgage rates.  The Mortgage Bankers Association of American reported that applications for purchases and refinances both declined by 2.0 percent and 1.0 percent respectively.

Housing Starts:  The housing sector continues to improve with housing starts rising by 4.8 percent in June.  Permits also increased 1.5 percent which shows that builders remain confident about the future of housing related to new home construction.  Single-family home starts rose 4.4 percent with permits up 1.0 percent.

When compared from the previous quarter, housing starts are up 0.8 percent while permits have remained virtually flat.  The housing market is not on fire, however it is directly contributing to economic stability.

Existing Home Sales:  This housing sector continues to show gains as existing home sales climbed 1.1 percent for the month of June. At an annualized rate of 5.570 million, this is the best pace since February 2007.  Single-family sales increased a very strong 0.8 percent in June, and is currently 3.1 percent higher than the same time last year.

FHFA House Price Index:  The rise in recent home sale prices appears to be driven in part by seller concessions.  The FHFA house price index rose 0.2 percent for the month of May.  This is the weakest increase since last August   Home prices are up 5.6 percent from the same time last year which is one of the lowest differentials since the start of the housing recovery.

Next week’s potential market moving reports are:

 

  • Tuesday July 26th – S&P Case-Shiller HPI, New Home Sales, and Consumer Confidence
  • Wednesday July 27th – MBA Mortgage Applications and New Home Sales
  • Thursday July 28th – First Time Jobless Claims and EIA Petroleum Report
  • Friday July 29th – GDP and Consumer Sentiment

 

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 feel free to reach me at 661-618-1789.