Quicken Loans Market Update - Zing Blog

Headline News from Last Week

  • Housing Market Index – At 54, the current sales component is above 50 for the first time since January.
  • Consumer Price Index – Consumer price inflation was warmer than expected in May. Energy and food were particularly strong. Overall CPI inflation posted at 0.4%.
  • Housing Starts – Starts fell 6.5% in May following a strong 12.7% increase in April.
  • MBA Purchase Applications – A move higher in interest rates drove down demand for mortgage applications, according to the Mortgage Bankers Association, whose purchase index fell 5.0%.
  • Jobless Claims – Initial claims decreased 6,000 to 312,000. The four-week average, at 311,750, is down 11,000 from mid-month May.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, average fixed-rate mortgage rates moved slightly lower for the week.

30-year fixed-rate mortgages (FRMs) averaged 4.17% with an average 0.6 point for the week ending June 19, 2014, down from last week when they averaged 4.20%. A year ago at this time, 30-year FRMs averaged 3.93%.

15-year FRMs this week averaged 3.30% with an average 0.5 point, down from last week when they averaged 3.31%. A year ago at this time, 15-year FRMs averaged 3.04%.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 3.00% this week with an average 0.4 point, down from last week when they averaged 3.05%. A year ago, 5-year ARMs averaged 2.79%.

1-year Treasury-indexed ARMs averaged 2.41% this week with an average 0.4 point, up from last week when they averaged 2.40%. At this time last year, 1-year ARMs averaged 2.57%.

Equity Market

The S&P 500 and the Dow Jones Industrial Average both closed at record highs Friday. The Dow made it to 16,947.08 and the S&P 500 hit 1,962.87. The NASDAQ also finished the week with a gain of 1%.

The Week Ahead

Monday, June 23

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.

Tuesday, June 24

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.

S&P Case-Shiller HPI (9:00 a.m. ET) – The S&P/Case-Shiller home price index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S.

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.

Consumer Confidence (10:00 a.m. ET) – The Consumer Confidence Index is based on consumers’ perceptions of current business and employment conditions, as well as their expectations for six months regarding business conditions, employment and income.

Thursday, June 26

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 27

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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