U.S. Stocks Ride Amid Plunge in Home Sales - Market Update - Zing Blog

Headline News from Last Week

  • MBA Purchase Applications – Despite the decline underway in mortgage rates, mortgage applications continue to move lower. Purchase applications dropped 4.0%, while refinance applications fell 3.0%.
  • Jobless Claims – Initial claims edged up 8,000 to 312,000. Despite the increase, the trend still points to improvement with the four-week average down 2,250.
  • Employment Situation – As expected, job growth moderated in May. Total nonfarm payroll jobs advanced 217,000 after a 282,000 increase in April. Private jobs gained 216,000, slightly above the 215,000 prediction.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, average fixed-rate mortgage rates remained flat amid a week of light economic reports.

30-year fixed-rate mortgages (FRMs) averaged 4.14% with an average 0.5 point for the week ending June 5, 2014, up from last week when they averaged 4.12%. A year ago at this time, 30-year FRMs averaged 3.91%.

15-year FRMs this week averaged 3.23% with an average 0.5 point, up from last week when they averaged 3.21%. A year ago at this time, 15-year FRMs averaged 3.03%.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.93% this week with an average 0.4 point, down from last week when they averaged 2.96%. A year ago, 5-year ARMs averaged 2.74%.

1-year Treasury-indexed ARMs averaged 2.40% this week with an average 0.4 point, down from last week when they averaged 2.41%. At this time last year, the 1-year ARMs averaged 2.58%.

Equity Markets

It was a positive week for the major indexes. The Dow Jones Industrial Average increased 1.24%, while the S&P 500 jumped 1.34%. The NASDAQ ended the week up 1.86%.

The Week Ahead

Wednesday, June 11

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 12

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.

Retail Sales (8:30 a.m. ET) – Retail sales measure the total receipts at stores that sell merchandise and related services to final consumers. Sales are by retail and food service stores.

Friday, June 13

Consumer Sentiment (9:55 a.m. ET) – The University of Michigan’s Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending.

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


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