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Average Fixed-Rate Mortgages Hit New 2014 Lows – Market Update

Posted By Anthony Fontana On June 2, 2014 @ 5:23 pm In Market Insights | No Comments

Market Update - Quicken Loans Zing Blog

Headline News from Last Week

  • FHFA House Price Index – Supply shortages continued to put pressure on home prices, which increased 0.7% in March on a seasonally-adjusted basis.
  • S&P Case-Shiller HPI – Home price appreciation remained strong with Case-Shiller’s 20-city adjusted index, up a higher-than-expected 1.2% in March.
  • Consumer Confidence – An increase of 1.3 points made it three straight months at a level of at least 80.
  • MBA Purchase Applications – Mortgage applications for home purchases remained flat, down 1.0%.
  • GDP – The first quarter was weak due to adverse weather. Real GDP growth was revised down to an annualized -1.0%.
  • Jobless Claims – Claims fell 27,000 to 300,000. The four-week average is down a sharp 11,250 to a new recovery low of 311,500.
  • Pending Home Sales Index – Pending Home Sales rose 0.4% in April, building slightly on top of March’s 3.4% surge.
  • Consumer Sentiment – Although it had been on a rise, Consumer Sentiment took a step back in May. The 81.9 mark was down from April’s 84.1.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, average fixed-rate mortgage rates fell for the fifth consecutive week and hit new 2014 lows.

30-year fixed-rate mortgages (FRMs) averaged 4.12% with an average 0.6 point for the week ending May 29, 2014, down from last week when they averaged 4.14%. A year ago at this time, 30-year FRMs averaged 3.81%.

15-year FRMs this week averaged 3.21% with an average 0.5 point, down from last week when they averaged 3.25%. A year ago at this time, 15-year FRMs averaged 2.98%.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.96% this week with an average 0.3 point, unchanged from last week. A year ago, 5-year ARMs averaged 2.66%.

1-year Treasury-indexed ARMs averaged 2.41% this week with an average 0.4 point, down from last week when they averaged 2.43%. At this time last year, 1-year ARMs averaged 2.54%.

Equity Markets

The S&P 500 increased over 2% this month, ending at 1,923.5. The NASDAQ had an even better month, adding 3.1% in May. The Dow Jones Industrial Average, not to be outdone, increased to a new high of 16,717.

Wednesday, June 4

MBA Purchase Applications (7:00 a.m. ET) – The purchase applications index measures applications at mortgage lenders. This is a leading indicator for single-family home sales and housing construction.

Thursday, June 5

Jobless Claims (8:30 a.m. ET) – New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time.

Friday, June 6

Employment Situation (8:30 a.m. ET) – The employment situation is a set of market indicators based on two separate surveys.

Visit the Quicken Loans Zing Blog for updated information on important economic releases that affect your wallet.


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