Quicken Loans Market Update - Zing Blog

Headline News from Last Week

  • Consumer Credit – Consumer credit rose $19.6 billion in May following a revised gain of $26.1 billion in April. Gains for revolving credit increased $1.8 billion, pointing to strong credit card use.
  • MBA Purchase Applications – Mortgage applications for home purchases rose 4% following a run of soft showings. Applications for refinancing edged up 0.4% for the week.
  • Jobless Claims – Claims remained steady at favorable levels with initial claims down 11,000 to a lower-than-expected 304,000. The four-week average is down 3,500.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, average fixed-rate mortgage rates changed little from the previous week.

30-year fixed-rate mortgages (FRMs) averaged 4.15% with an average 0.7 point for the week ending July 10, 2014, up from last week when they averaged 4.12%. A year ago at this time, 30-year FRMs averaged 4.51%.

15-year FRMs this week averaged 3.24% with an average 0.6 point, up from last week when they averaged 3.22%. A year ago at this time, 15-year FRMs averaged 3.53%.

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 3.26%.

1-year Treasury-indexed ARMs averaged 2.40% this week with an average 0.4 point, up from last week when they averaged 2.38%. At this time last year, 1-year ARMs averaged 2.66%.

Equity Market

Each of the three major indexes gave up some of the momentum gained the week prior. At -1.57%, the NASDAQ had the biggest drop, followed by the S&P 500 (-0.90%) and the Dow Jones Industrial Average (-0.73%).

The Week Ahead

Tuesday, July 15

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.

Wednesday, July 16

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.

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, sale of new homes expected in the next six months, and traffic of prospective buyers in new homes.

Thursday, July 17

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

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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