Mortgage Rates Archives - Page 27 of 64

According to the National Association of Home Builders Housing Market Index for April, Builder Confidence dropped three points to an index reading of 68 in April. While any reading over 50 indicates positive builder confidence, home builders said that they continue to face obstacles including higher costs for materials and elevated costs associated with regulatory issues. Builders have repeatedly cited concerns including a lack of buildable lots and labor shortages in past months.

Home Builder Component Readings Fall But Remain in Positive Territory

Component readings of the Housing Market Index include builder confidence in current market conditions for newly built homes, which dropped three points to 73. Builder confidence in market conditions over the next six months fell three points to 75. Home builder confidence in buyer traffic volume for new housing developments dropped one point to an April reading of 52.

Regional Readings for Builder Sentiment Vary

Regional readings for April were included in the three-month rolling average in four U.S. regions. Builder confidence in the Northeastern region fell by two points to 46; The Midwestern region added one point for a builder confidence reading of 68, while the Southern region’s reading was unchanged at 68. The Western region added one point for a three-month reading of 77.

Housing industry groups and analysts watch the NAHB Housing Market Index for indications of future volume in housing starts, but builder confidence and housing starts are not always closely connected. The Commerce Department will release readings for March housing starts and building permits issued on Tuesday.

Last week’s economic releases included readings on inflation, core inflation, new jobless claims, and mortgage rates. Consumer sentiment for April was also released.

Inflation Rate Dips in April

Consumer Price Index readings for April indicated that inflation decreased from 0.10 percent growth in March to a negative reading of -0.30 percent reading in April. The Core Consumer Price Index, which does not include volatile food and energy readings, also dipped in April to -0.10 percent from the March reading of +0.20 percent. While negative readings for month=to-month inflation suggests sluggish economic conditions, month-to-month readings can be volatile

It’s possible that sluggish inflation readings could cause the Fed to postpone further interest rate increases. Lenders typically raise consumer interest rates when the Fed raises its target federal funds rate.

Mortgage Rates, New Jobless Claims

Freddie Mac reported lower average mortgage rates last week. Rates for a 30-year fixed rate mortgage averaged 4.08 percent a reading two basis points lower than for the previous week. The average rate for a 15-year fixed rate mortgage was two basis points lower at 3.34 percent; rates for a 5/1 adjustable rate mortgage dropped by one basis point to an average of 3.18 percent Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages. Last week’s mortgage rates were the lowest seen so far in 2017.

Fewer new jobless claims were filed last week with 234,000 new claims filed as compared expectations of 245,000 new claims filed and the previous week’s reading of 235, new claims filed.

Consumer sentiment rose in April to an index reading of 98.0. Analysts expected a reading of 96.0 based on the March reading of 96.9. The University of Michigan said that most consumers are upbeat about current economic conditions.

What‘s Ahead

This week’s scheduled economic news includes the NAHB Housing Market Index, Existing Home Sales, Commerce Department readings on housing starts and building permits issued. Weekly readings for average mortgage rates and new jobless claims will also be released.

NAHB: Builder Sentiment Dips in April

What’s Ahead For Mortgage Rates This Week – April 17, 2017

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