Avenue Mortgage, LLC

NMLS #1115220

  • Home
  • About
    • About Kay
    • Accessibility Statement
    • Complaint/Recovery Fund Notice
  • Blog
  • Our Resources
    • First Time Seller Tips
    • First Time Buyer Tips
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
    • What to Expect at a Loan Closing: A Step-by-Step Guide
  • Our Reviews
  • Contact Us

What’s Ahead For Mortgage Rates This Week – December 29, 2014

December 29, 2014 by Kay Monigold

What's Ahead For Mortgage Rates This Week December 29 2014Last week’s economic news included several housing related reports. Housing markets continue to cool as November reports on existing and new home sales fell below expectations. New Jobless claims were lower than expected by 10,000 claims. The details:

Existing and New Home Sales Down, FHFA House Price Index Up

The National Association of Realtors® reported that November sales of existing homes fell to 4.93 million sales against expectations of 5.18 million sales. October’s reading was revised from 5.25 million sales to 5.26 million. This was seen as an anomaly that may have occurred during uncertainty caused by volatile stock markets. Federal Reserve Chair Janet Yellen slow housing markets to tight lending standards in a recent statement.

FHFA reported that October home prices connected with Fannie Mae and Freddie Mac mortgages increased incrementally year-over-year. October house prices increased to 4.50 percent year-over-year as compared to September’s year-over-year house price increase of 4.40 percent.

November sales of new homes fell short of expectations according to the Commerce Department. 438,000 new homes were sold as compared to expectations of 450 new home sales and September’s reading of 445,000 new homes sold. This was the slowest rate of growth in four months.

New home sales declined in three of four regions. Readings for November were -12.00 percent in the Northeast, -6.40 percent in the Southeast, -6.30 percent in the Midwest. Sales of new homes rose by 14.80 percent in the West. Analysts typically caution against reading too much into volatile month-to-month figures, but they are concerned about longer-term sales trends too. Sales of new homes were 1.60 percent lower year-over-year.

The median sale price of new homes was $280,900 in November, which was 1.40 percent higher year-over-year.

Mortgage Rates Up, New Jobless Claims Down

Mortgage rates rose across the board according to Freddie Mac’s weekly survey of average mortgage rates. The average rate for a 30-year fixed rate mortgage increased three basis points to 3.83 percent. The average rate for a 15-year mortgage rose one basis point to 3.10 percent. The average rate for a 5/1 adjustable rate mortgage was six basis points higher at 3.01 percent. Discount points were 0.60 for 30 and 15-year fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

280,000 new jobless claims were filed last week, a seven-week low. Analysts expected 290,000 new claims based on the prior week’s reading of 289,000 new claims. The four-week rolling average of new jobless claims also showed improvement with 8500 fewer claims at 290,250 new jobless claims filed. Stronger labor markets are considered good news for housing markets as more consumers can afford to buy homes.

No economic reports were scheduled Thursday or Friday due to the Christmas holiday.

What’s Ahead

This week brings Case-Shiller Home Price reports, Pending Home Sales and Construction Spending. Freddie Mac mortgage rates and Weekly Jobless Claims will be released on Wednesday due to the New Year’s Day holiday on Thursday.

Filed Under: Market Outlook Tagged With: Case Shiller, FHFA, Market Outlook

Existing Home Sales Dip to Lowest Level since May

December 24, 2014 by Kay Monigold

Existing Home Sales Dip to Lowest Level since MayThe National Association of Realtors® reported that sales of existing homes dropped to a seasonally-adjusted annual rate of 4.93 million as compared to expectations of a 5.18 million existing homes sold. Projections were based on October’s reading of 5.25 million. November’s reading showed a 6.10 percent dip in sales of existing homes and was the lowest reading since May.

Fed Chair Janet Yellen said last week that the less than robust housing recovery is due in part to tight lending standards. Lawrence Yun, chief economist for the National Association of Realtors®, said that November’s reading was likely an aberration due to volatility in the stock market, which could have dampened home buyer enthusiasm.

Analysts expect easing of mortgage guidelines and an improved job market to help increase home sales. The national median price for existing homes rose to $205,300 in November, which represented a year-over-year increase of five percent. Inventories of used homes rose to a 5.10 month supply, which was more than double the 2.01 month supply of existing homes for sale in November 2013.

FHFA Reports Year-Over-Year Increase in Home Prices

The Federal Housing Finance Agency (FHFA) reported a monthly gain of 0.60 percent for home prices associated with mortgages owned or backed by Fannie Mae and Freddie Mac. FHFA said that home prices rose 4.50 percent year-over-year in October as compared to the October 2013 reading of 4.40 percent year-over-year. The increase in FHFA home prices was likely connected to a decrease in foreclosure rates and fewer distressed sales.

FHFA house prices encompass the nine census divisions. On a month-to-month basis, FHA home prices rose by 0.60 percent in October. Month-to-month home prices by census division ranged from -0.30 percent for the Pacific division to +1.50 percent for the Atlantic division. On a year-over-year basis, home prices increased for all nine regions and ranged from +0.80 percent in the Mid-Atlantic division to +6.00 percent in the Pacific division.

Filed Under: Market Outlook Tagged With: Existing Home Sales, FHFA, National Association of REALTORS

« Previous Page
Next Page »

Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Ron MartinRon Martin
Residential Mortgage Loan Originator

NMLS#316821

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

GET A RATE QUOTE →

Connect with Us!

Browse Articles by Category

Accessibility Statement

We are committed to ensuring that its website is accessible to people with disabilities. All the pages on our website will meet W3C WAI’s Web Content Accessibility Guidelines 2.0, Level A conformance. Website Accessibility Policy

Equal Housing Lender


100 Independence Place, Ste. 308
Tyler, TX 75703
nmlsconsumeraccess.org

Quick Links

  • About
    • About Us
    • Texas Complaint/Recovery Fund Notice
  • Get a Rate Quote
  • Resources
    • Loan Process
  • Contact Us

Copyright © 2025 · Powered by MySMARTblog

Copyright © 2025 · Genesis Sample Theme on Genesis Framework · WordPress · Log in