Market UpdateHeadline News

Pending Home Sales Index: The pending home sales index is up 0.9% to 112.6, beating expectations for May and reaching its highest point since 2006. Sales are up 2.2% in the West for a 13.0% annual gain. Joining the gains was the Northeast, up 6.3% and 10.6% on the year. The South saw a 0.8% decline in pending sales, but it’s up 10.6% for the year. The Midwest is down 0.6% for the month and has gained 7.8% annually.

S&P Case-Shiller HPI: The survey showed home prices were up 0.3% on a seasonally adjusted basis month to month. Prices were up 1.1% overall in April and up 4.9% for the year. Despite the gains, eight of the 20 cities surveyed showed price declines, with Cleveland losing 0.5% and Atlanta and Chicago at 0.4%. Meanwhile, Minneapolis saw a 1.0% gain in April. It was followed by Denver, Detroit and Las Vegas with 0.9% gains.

Consumer Confidence: Consumer confidence rose almost seven points from its May level to come in at 101.4. The expectations component is up 8.2 points to 94.6. There’s optimism about both the jobs and income levels. The present situation component is also up 4.5 points to 111.6, a good sign for consumer spending. The percentage of Americans that consider jobs hard to get is down 1.5 points to 25.7%. The number of people planning to buy a car also grew significantly again in June and home buying plans are holding at a solid pace.

MBA Mortgage Applications: Applications were down 4.7% overall last week as the average conforming loan rate jumped five basis points to 4.26%. Purchases were down 4.0%, while refinances fell 5.0%.

ISM Manufacturing Index: The index was up 0.7 points, coming in at 53.5 for the month of June. New orders had a slight increase from May, settling at 56.0. Employment is up nearly four points to 55.5. New export orders showed a contraction, though, at 49.5, blamed on a strong dollar. Delivery times fell this month showing that the market is getting back to normal following West Coast port closures.

Employment Situation: There were a lower-than-expected 223,000 jobs added to nonfarm payrolls in June. Meanwhile, May-added jobs were revised down 26,000 to 254,000. The unemployment rate fell from 5.5% to 5.3%. Average hourly earnings were flat at $24.95, up 2.0% on the year. The labor force participation rate was down 0.3% to 62.6% for the month. Among the big gainers, there were 33,000 jobs added in retail and 64,000 jobs added in professional and business services. The average work week was 34.5 hours.

Jobless Claims: New claims for unemployment were up 10,000 this week to 281,000. The four-week average is just slightly higher, up 1,000 to 274,750. Meanwhile, continuing claims rose 15,000 to 2.264 million. The four-week average matched that rise, coming in at 2.253 million. Unemployment is still unusually low.

Mortgage News

Rates were up across the board this week heading into the Fourth of July weekend.

30-year fixed-rate mortgages (FRMs) averaged 4.08% with an average 0.6 point for the week ending July 2, 2015, up from last week when they averaged 4.02%. A year ago at this time, 30-year FRMs averaged 4.12%.

15-year FRMs this week averaged 3.24% with an average 0.6 point, up from last week when they averaged 3.21%. A year ago at this time, 15-year FRMs averaged 3.22%.

5-year Treasury-indexed hybrid adjustable rate mortgages (ARMs) averaged 2.99% this week with an average 0.4 point, up from last week when they averaged 2.98%. A year ago, 5-year ARMs averaged 2.98%.

1-year Treasury-indexed ARMs averaged 2.52% this week with an average 0.3 point, up from last week when they averaged 2.50%. At this time last year, 1-year ARMs averaged 2.38%.

Stock Markets

Stocks closed lower on Thursday at the end of a shortened trading week. Here at home, the markets reacted to a lower-than-expected jobs report. In this week’s episode of “As Greece Turns,” voters rejected a deal offered by the country’s creditors. Both stock and bond traders will probably be eyeing the situation closely as they wait to see whether Greece will exit the Euro.

The Dow Jones Industrial Average was down 27.83 points Friday, closing at 17,730. This represented a loss of 1.22% for the week. The S&P 500 was down 1.16 points to 2,076.27, matching the Dow’s 1.22% weekly loss. The NASDAQ was down 1.42% for the week, losing 3.91 points Friday to close at 5,009.21.

The Week Ahead

Tuesday, July 7

International Trade (8:30 a.m. ET) – International trade is composed of merchandise (tangible goods) and services. It’s available by export, import and trade balance for six principal end-use commodity categories and for more than 100 principal Standard International Trade Classification system commodity groupings.

Wednesday, July 8

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

Thursday, July 9

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. An increasing trend suggests a deteriorating labor market. The four-week moving average of new claims smooths out weekly volatility.

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

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