Last week’s economic reporting included readings on home prices, inflation, and pending home sales. Weekly readings on mortgage rates and jobless claims were also published.
S&P Case-Shiller Home Price Indices Report Slower Home Price Growth in January
Home price growth cooled in January according to S&P Case-Shiller’s 20-City Home Price Index. Home prices increased by 2.50 percent year-over-year in January but rose at a slower pace than December’s reading of 4.60 percent. The FHFA Home Price Index also showed slower growth in January with year-over-year home price growth of 5.30 percent as compared to December’s home price growth rate of 6.60 percent.
The top three cities for home price growth in the 20-City Home Price Index were Miami, Florida, Tampa, Florida, and Atlanta, Georgia. In contrast, western U.S. cities posted the most declines in home prices. San Francisco, California, Seattle, Washington, and Portland, Oregon posted the steepest declines in home values in January. Home prices in western cities grew rapidly before the pandemic and are falling in post-pandemic markets.
Rapidly rising mortgage rates have narrowed the pool of qualified homebuyers and ongoing shortages of available homes are keeping home prices relatively high. As long as demand for homes exceeds available homes, it’s unlikely that housing markets will crash, but prospective buyers seem wary of recently rising mortgage rates and a slowing economy.
Mortgage Rates Fall as Jobless Claims Rise
Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by 10 basis points to 6.32 percent. Rates for 15-year fixed-rate mortgages fell by 12 basis points and averaged 5.56 percent. Lower rates were welcome especially when some analysts expect mortgage rates to climb past eight percent in coming months.
198,000 new jobless claims were filed last week and outstripped predictions of 195,000 claims filed and the prior week’s reading of 191,000 first-time claims filed.
The final edition of the University of Michigan’s Consumer Sentiment Survey for March fell from an index reading of 67 to 62. Index readings above 50 indicate that most consumers surveyed have a positive view of current economic conditions, Current sentiment remains below an index reading of 101 recorded before the pandemic.
What’s Ahead
This week’s scheduled economic reporting includes readings on construction spending, public and private-sector reports on job growth, and the national unemployment rate. Weekly readings on mortgage rates and jobless claims will also be released.
Right now, the real estate market is very competitive, and you might be tempted to use a few white lies to make your offer seem more competitive. No matter how much you want to purchase a home, you need to make sure you are completely honest and open when you go through the process from start to finish. What or a few examples of common white lies that people tell that could jeopardize your application or your mortgage as a whole?
Buying a home comes with numerous financial planning obligations. It’s far from a turn-key operation and one of the significant challenges involves developing a working knowledge about things often outside your area of expertise.
If you’ve recently put your home up for sale, one of the most exciting parts of the selling process is getting an offer. However, all is not said and done once you’ve received an offer, as you’ll probably want to negotiate a better price. If you’re wondering how you can counter without losing a potential buyer, here are some tips when the time comes to negotiate.
Last week’s financial and economic reporting included readings on sales of new and previously-owned homes, along with weekly data on mortgage rates and jobless claims.
If you’re about to seek approval for a mortgage, you’ll want to ensure you have a solid credit score and clean financial records to boost your likelihood of being approved. There are certain characteristics that lenders want to see in a mortgage applicant before they agree to give a loan, and you want to prove that you’re a responsible borrower. But certain behaviors can easily tank your application and crush your home ownership dreams.
When you go through the process of applying for a mortgage, you need to make sure you understand all of the terms on the page. Two of the most common numbers you will come across include the mortgage rate and the APR. Many people associate both of these numbers with interest rates, but you will probably notice that they are not quite the same. What are the differences between these two numbers, and how are they going to impact your mortgage loan?
Even though interest rates have gone up significantly during the past few months, there are still opportunities for you to find a home at a great price. The high interest rate can be discouraging for some people, but as long as you know how to navigate the market, you can still put yourself in a position to be successful.
The mortgage process is a long and complicated one, with a number of similar-sounding terms that can easily confuse first-time homebuyers. A pre-approval is not the same thing as a pre-qualification, and it’s important to understand everything that goes into a pre-approval. Being declined during the pre-approval process means you’ll have a hard time getting the funds you need to buy your home, so it’s important that you know what the process is going to look like before going into it.
Last week’s economic reporting included readings on housing starts and building permits issued, the National Association of Home Builders Housing Market Index, and Fed Chair Janet Yellen’s Senate testimony. The Commerce Department reported on housing starts and building permits issued published, and a monthly reading on consumer sentiment was published. Weekly reports on mortgage rates and jobless claims were also released.