Quicken Loans Market Update - Zing Blog

Headline News from Last Week

  • Retail Sales – Despite an increase of 0.2%, sales disappointed for June, falling short of the 0.6% expectation.
  • MBA Purchase Applications – The purchase index fell 8.0%, more than reversing a 4.0% gain in the prior week.
  • Housing Market Index – New home sales, which surged in May, rose four points in July and are at their best level since January.
  • Housing Starts – June starts came in at 0.893 million units annualized, up 7.5% on a year-ago basis. Expectations were for 1.026 million units.
  • Jobless Claims – Initial claims fell 3,000 to 302,000. The four-week average also dropped to 309,000.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, average fixed-rate mortgage rates moved down slightly to remain near historic lows.

30-year fixed-rate mortgages (FRMs) averaged 4.13% with an average 0.6 point for the week ending July 17, 2014, down from last week when they averaged 4.15%. A year ago at this time, 30-year FRMs averaged 4.37%.

15-year FRMs this week averaged 3.23% with an average 0.5 point, down from last week when they averaged 3.24%. A year ago at this time, 15-year FRMs averaged 3.41%.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.97% this week with an average 0.4 point, down from last week when they averaged 2.99%. A year ago, 5-year ARMs averaged 3.17%.

1-year Treasury-indexed ARMs averaged 2.39% this week with an average 0.4 point, down from last week when they averaged 2.40%. At this time last year, 1-year ARMs averaged 2.66%.

Equity Market

U.S. stocks rebounded significantly after a sharp sell-off Thursday. The Dow Jones Industrial Average rose 123 points and ended the week up 0.9%. The S&P 500 increased 1% and closed the week with a gain of 0.5%. The NASDAQ bounced around 1.6% Friday and also ended the week up.

The Week Ahead

Tuesday, July 22

FHFA House Price Index (9:00 a.m. ET) – The Federal Housing Finance Agency (FHFA) House Price Index (HPI) covers single-family housing, using data provided by Fannie Mae and Freddie Mac. The House Price Index is derived from transactions involving conforming conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac.

Existing Home Sales (10:00 a.m. ET) – Existing Home Sales tallies the number of previously-constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

Wednesday, July 23

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, July 24

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.

New Home Sales (10:00 a.m. ET) – New home sales measure the number of newly-constructed homes with a committed sale during the month.

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


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