Quicken Loans Market Update - Zing Blog

Headline News from Last Week

  • MBA Purchase Applications – Demand for both purchase and refinance applications, which had been soft in prior weeks, increased significantly. Purchase applications rose 9.0%, while refinance applications jumped 11.0%.
  • Jobless Claims – Initial claims rose 4,000 to 317,000. Despite the increase, claims remain down nearly 10,000 against the month-ago comparison.
  • Retail Sales – Sales rose 0.3% in May, following a 0.5% jump in April.
  • Consumer Sentiment – The current conditions component jumped 1.0 point from final May to 95.4. This offers an early signal of steady strength for June consumer activity.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, average fixed-rate mortgage rates rose following the May jobs report.

30-year fixed-rate mortgages (FRMs) averaged 4.20% with an average 0.6 point for the week ending June 12, 2014, up from last week when they averaged 4.14%. A year ago at this time, 30-year FRMs averaged 3.98%.

15-year FRMs this week averaged 3.31% with an average 0.5 point, up from last week when they averaged 3.23%. A year ago at this time, 15-year FRMs averaged 3.10%.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 3.05% this week with an average 0.4 point, up from last week when they averaged 2.93%. A year ago, 5-year ARMs averaged 2.79%.

1-year Treasury-indexed ARMs averaged 2.40% this week with an average 0.4 point, unchanged from last week. At this time last year, 1-year ARMs averaged 2.58%.

Equity Markets

The Dow Jones Industrial Average, S&P 500 and NASDAQ all rose Friday, headlined by the Dow’s 0.25% jump. However, all three indices ended the week down, headlined by the Dow’s 0.88% fall.

The Week Ahead

Monday, June 16

Housing Market Index (10:00 a.m. ET) – The National Association of Home Builders produces a housing market index based on a survey in which respondents from this organization are asked to rate the general economy and housing market conditions. The housing market index is a weighted average of present sales of new homes, sales of new homes expected in the next six months and traffic of prospective buyers in new homes.

Tuesday, June 17

Consumer Price Index (8:30 a.m. ET) – The Consumer Price Index is a measure of the change in the average price level of a fixed basket of goods and services purchased by consumers.

Housing Starts (8:30 a.m. ET) – A housing start is registered at the start of construction of a new building intended primarily as a residential building. The start of construction is defined as the beginning of excavation of the foundation for the building.

Wednesday, June 18

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 19

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.

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

 

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