Financial Reports

Last week’s economic news included  readings on home price trends, pending home sales and weekly readings on average mortgage rates and first-time jobless claims. The University of Michigan also released consumer sentiment report.

Case-Shiller Reports Slower Home Price Growth in June

According to Case-Shiller Home Price Indices for June, home prices gained an average of 2.10 percent year-over-year. This was the slowest growth of home prices since 2012. Analysts said that home prices grew at one-third the 6.30 percent that home prices grew last year.

Home prices grew fastest in Phoenix, Arizona with year-over-year growth of 5.80 percent; Las Vegas, Nevada home prices rose 5.50 percent and Tampa, Florida reported 4.70 percent growth in home prices.

West coast cities led home price growth in recent years when home prices were rapidly increasing, but growth has slowed and Seattle, Washington reported negative year-over-year growth of home prices in June.Potential obstacles to home price growth include rising materials costs due to tariffs on imported building materials and concerns over slowing economic growth.

Pending Home Sales Lower in July

The National Association of Realtors® reported fewer pending home sales in July as compared to June. Pending sales, which are defined as sales for which purchase contracts have been signed, but sales not closed, fell by -2.50 percent in July as compared to 2,80 percent growth in June. Real estate pros said that the peak home-buying season slows as summer progresses.

All four regions reported fewer contract signings for previously-owned homes in July; the Northeast reported -1.60 percent fewer pending sales, the Midwest had -2.50 percent fewer pending sales and the South reported -2.40 percent fewer sales contracts signed. The biggest dip in contracts signed was in the West with sales contracts -3.40 percent lower than for June.

Analysts and real estate pros expected falling mortgage rates to boost home sales, but current homeowners took advantage of low mortgage rates to refinance their mortgages as would-be home buyers were unaffected by low mortgage rates.

Mortgage Rates Mixed, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates for fixed rate loans; rates rose three basis points on average for 30 and 15-year fixed rate mortgages. Rates for a 30-year fixed rate mortgage averaged 3.58 percent; the average rate for a 15-year fixed rate mortgage was 3.06 percent and 5/1 adjustable rate mortgage rates averaged 3.31 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages

Initial jobless claims rose from the prior week’s reading of 211,000 to 215,000 new jobless claims filed last week. Analysts expected 214,000 new claims to be filed. The University of Michigan’s consumer sentiment index dropped to an index reading of 89.8 as compared to the expected reading of 92.3 and July’s reading of 92.1. August’s reading was the lowest measurement of consumer sentiment since 2012.

What’s Ahead

This week’s scheduled economic news includes readings on construction spending and data on public and private-sector jobs growth and the national unemployment rate. Weekly reports on mortgage rates and first-time jobless claims will also be released.

Last week’s economic news included readings  from the National Association of Home Builders Housing Market Index and July readings on housing starts and building permits issued. Weekly readings on initial jobless claims and mortgage rates were also released.

NAHB: Home Builder Sentiment Remains High

According to the National Association of Home Builders, builder confidence in housing market conditions rose one point to an index reading of 66 for August. Housing Market Index readings showed that builder sentiment has held steady with readings of 64 to 66; any reading over 50 indicates positive builder sentiment.

Analysts said that despite strong readings for builder confidence in recent months, Commerce Department readings on housing starts and building permits issued did not reflect high builder confidence readings. Reports on housing starts and building permits issued fall one month behind the NAHB Housing Market Index.

Housing Starts Falter as Building Permits Increase

Commerce Department readings for July showed mixed results for housing starts and building permits issued as starts fell from June’s  downwardly revised reading of 1.24 million starts to 1.19 million starts in July. Housing starts are calculated on a seasonally-adjusted annual basis.

July building permits rose from June’s reading of 1.232 million permits to 1.336 million permits issued. Analysts expected a reading of 1.287 million housing starts for July. This was the second consecutive positive reading for housing starts after a post-recession period of fewer starts.

While building permits for single-family homes traditionally outpace permits issued for multi-family housing, analysts noted that demand for multi-family housing developments is trending higher due to high prices for single-family homes.

Increasing costs for building materials, indications of  global and domestic economic uncertainty and changing consumer priorities were cited as trends impacting housing starts.

Mortgage Rates Hold Near Record  Low, New Jobless Claims Rise

Freddie Mac reported little change in mortgage rates last week; the average rate for 30-year fixed rate mortgages was unchanged at 3.60 percent. Rates for 15-year fixed rate mortgages averaged 3.07 percent and were two basis points higher.

The average rate for 5/1 adjustable rate mortgages fell one basis point to 3.35 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose last week to 220,000 new claims filed as compared to the prior week’s reading of 211,000 new jobless claims filed. Analysts expected 212,000 claims to be filed last week. Nearly 6000 new jobless claims filed in California boosted last week’s reading for new claims.

The less volatile four-week rolling report on new jobless claims rose by 1000 claims to  213,750 new claims filed. New jobless claims hit their highest level in six weeks, but were lower than average.

Consumer sentiment concerning current economic conditions fell 6.20 points to an index reading of 92.1 according to the University of Michigan monthly survey of consumer confidence in the economy. Concerns over trade wars and the Federal Reserve’s decision to lower its target interest rate range prompted consumer confidence to slip in August.

What‘s Ahead

This week’s scheduled economic news includes readings on sales of new and previously owned homes and minutes from the last meeting of the Federal Reserve’s Federal Open Market Committee. Weekly readings on mortgage rates and new jobless claims will also be released.

Last week’s economic news included readings  from the National Association of Home Builders Housing Market Index and July readings on housing starts and building permits issued. Weekly readings on initial jobless claims and mortgage rates were also released.

NAHB: Home Builder Sentiment Remains High

According to the National Association of Home Builders, builder confidence in housing market conditions rose one point to an index reading of 66 for August. Housing Market Index readings showed that builder sentiment has held steady with readings of 64 to 66; any reading over 50 indicates positive builder sentiment.

Analysts said that despite strong readings for builder confidence in recent months, Commerce Department readings on housing starts and building permits issued did not reflect high builder confidence readings. Reports on housing starts and building permits issued fall one month behind the NAHB Housing Market Index.

Housing Starts Falter as Building Permits Increase

Commerce Department readings for July showed mixed results for housing starts and building permits issued as starts fell from June’s downwardly revised reading of 1.24 million starts to 1.19 million starts in July. Housing starts are calculated on a seasonally-adjusted annual basis.

July building permits rose from June’s reading of 1.232 million permits to 1.336 million permits issued. Analysts expected a reading of 1.287 million housing starts for July. This was the second consecutive positive reading for housing starts after a post-recession period of fewer starts.

While building permits for single-family homes traditionally outpace permits issued for multi-family housing, analysts noted that demand for multi-family housing developments is trending higher due to high prices for single-family homes.

Increasing costs for building materials, indications of  global and domestic economic uncertainty and changing consumer priorities were cited as trends impacting housing starts.

Mortgage Rates Hold Near Record Low, New Jobless Claims Rise

Freddie Mac reported little change in mortgage rates last week; the average rate for 30-year fixed rate mortgages was unchanged at 3.60 percent. Rates for 15-year fixed rate mortgages averaged 3.07 percent and were two basis points higher.

The average rate for 5/1 adjustable rate mortgages fell one basis point to 3.35 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose last week to 220,000 new claims filed as compared to the prior week’s reading of 211,000 new jobless claims filed. Analysts expected 212,000 claims to be filed last week. Nearly 6,000 new jobless claims filed in California boosted last week’s reading for new claims.

The less volatile four-week rolling report on new jobless claims rose by 1,000 claims to  213,750 new claims filed. New jobless claims hit their highest level in six weeks, but were lower than average.

Consumer sentiment concerning current economic conditions fell 6.20 points to an index reading of 92.1 according to the University of Michigan monthly survey of consumer confidence in the economy. Concerns over trade wars and the Federal Reserve’s decision to lower its target interest rate range prompted consumer confidence to slip in August.

What‘s Ahead

This week’s scheduled economic news includes readings on sales of new and previously owned homes and minutes from the last meeting of the Federal Reserve’s Federal Open Market Committee. Weekly readings on mortgage rates and new jobless claims will also be released.

Last week’s economic releases included readings on consumer credit, job openings and weekly reports on mortgage rates and first-time jobless claims.

Consumer Credit Use, Job Openings Slow in June

Consumer credit use slowed in June as credit card use lost ground. Non-revolving credit, which typically includes education and auto loans, grew at its slowest pace in three months. Mortgage loans are not included in the Federal Reserve’s report on consumer credit. Consumer credit use grew by $14.6 billion year-over-year in June as compared to May’s year-over-year reading of $16.0 billion.

Year-over-year credit use fell one percent in June to 4.30 as compared to May’s year-over-year reading of 5.30 percent. Credit card use fell by 0.10 percent in June, which suggested that consumers held off on large purchases. Fed Chair Jerome Powell said ,”households are in pretty good shape overall.” in reference to current economic conditions.

Job openings fell in June, but maintained a 15-month streak of seven million or more job openings. There were 7.35 million jobs open in June as compared to May’s reading of 7.38 million jobs open. Job openings rose in retail and real estate, but were lower in construction, leisure and hospitality categories.

Analysts said that shortages of skilled labor and fears over the effects of trade wars caused fewer hires. The trade war with China has not broken the longest period of economic growth in U.S. history, but escalation of trade disputes could further slow economic growth if trade wars aren’t resolved.

Mortgage Rates, Weekly Jobless Claims Fall

Mortgage rates dropped last week according to Freddie Mac. Rates for 30-year fixed rate mortgages averaged 3.60 percent and were 15 basis points lower. Rates for 15-year fixed rate mortgages averaged 3.05 percent and were 15 basis points lower.

The average rate for 5/1 adjustable rate mortgages dropped ten basis points to 3.36 percent. Discount points averaged 0.60 percent, 0.50 percent and 0.30 percent respectively.

Initial jobless claims fell last week to 209,000 new claims filed as compared to the prior week’s reading of 217,000  first-time claims filed. Analysts expected a reading of 215,000 new jobless claims filed for last week.

What‘s Ahead

This week’s scheduled economic news includes readings on housing market conditions, housing starts and building permits issued. Weekly readings on mortgage rates and initial jobless claims will also be released.

Last week’s economic news included readings from Case-Shiller on home prices, pending home sales, construction spending and a post-meeting statement from the Federal Open Market Committee of the Federal Reserve.

Consumer sentiment was released along with Commerce Department reports on public and private sector job growth and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims.

Home Price Growth Slows in May

The Case-Shiller National Home price Index showed slower home price growth in May; this was the 14^th consecutive month of slower growth in national home prices and the lowest reading for home price growth since the Great Recession.

Home prices grew by 3.40 percent on a seasonally-adjusted annual basis as compared to a 3.50 percent reading in April. While easing home price growth is a plus for would-be home buyers, slower growth in home prices could be a sign of overall economic slowing.

Construction spending was lower in June and fell by 1.20 percent. Analysts expected spending to slow at 0.10 percent based on May’s reading of -0.80 percent. Les spending suggests fewer homes will be built and demand for homes could increase based on the combined effects of slower price gains, low mortgage rates and fewer available homes.

Pending home sales jumped 2.80 percent in June and 1.60 percent year-over-year according to the National Association of Realtors®. The year-over-year gain was the first in 17 months. Analysts said that slower growth in home prices coupled with lower mortgage rates would prompt more buyers to enter the housing market.

The Federal Reserve’s Open Market Committee lowered the Fed’s benchmark interest rate range on Wednesday. Committee members voted to lower the key fed rate range from 2.25-2.50 percent to 2.00-2.25 percent. Fed Chair Jerome Powell said that this rate reduction was not  first in a series of rate cuts, but one-off rate cuts by the Fed are not common.

Job Growth Mixed, Unemployment Rate Unchanged

Labor-sector readings for July showed mixed results for public and private-sector job growth, ADP reported 156,000 private sector jobs were added in July as compared to 112,000 jobs added in July.

The Commerce Department reported 164,000  private and public-sector jobs added in July as compared to June’s reading of 193,000 public-and private-sector jobs added. July’s lower reading was not unexpected as analysts projected 163,000 public and private-sector jobs added in July.

The national unemployment rate held steady at 3.70 percent; this was higher than in recent months, but  remained relatively low, which suggested few layoffs and strong job markets.

Freddie Mac reported little change to average mortgage rates. 30-year fixed rate mortgages averaged 3.75 percent and were one basis point higher than for the prior week. Rates for 15-year fixed rate mortgages were two basis points higher and averaged 3.20 percent. Rates for 5/1 adjustable rate mortgages averaged 3.46 percent and were one basis point lower.

Discount points averaged 0.60 percent for 30-year fixed rate mortgages, 0.50 percent for 15-year fixed rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.40 percent.

First-time jobless claims rose to 215,000 claims filed and surpassed expectations of 210,000 new claims filed, which was based on the prior week’s reading of 208,000 first-time claims filed.

Last week’s economic reports wrapped up with the University of Michigan’s Consumer Sentiment Index reading for July, which was two points higher than June’s index reading of 98.2. Consumers surveyed reported paying off debt and increasing savings as a hedge against slower economic growth.

What‘s Ahead

This week’s economic readings include weekly reports on mortgage rates and first-time jobless claims.