Market Update - Quicken Loans Zing Blog

I hope everyone had a great weekend! It’s an exciting day for Detroit, as the 59th Annual Detroit Ford Fireworks come out with a bang tonight. But while things are about to get explosive here, there was not much happening in the market last week. Let’s jump right in.

Headline News

MBA Mortgage Applications: Mortgage applications were up 0.6% last week. Purchase applications were down 1.0%, with refinance applications up 2.0% from the prior week to the highest level since November. The average rate on a 30-year fixed conforming mortgage remained unchanged from the prior week at 4.13%, the lowest level since November.

Existing Home Sales: Existing sales rose 1.1% in May to a seasonally adjusted annualized rate of 5.620 million. This caused the yearly pace to grow at a rate of 2.7% vs. 1.5% in May. Single-family home sales were up 1.0% to a 4.980 million rate. Prices were up, as the median price rose 3.2% to $252,800. Supply was also up, aided by strength in prices, at 4.2 months from 4.1 and 3.8 in April and May.

Jobless Claims: Initial claims rose by 3,000 jobs to come in at 241,000 in the June 17 week. The four-week average was up very slightly to 244,750. Continuing claims are little changed at 1.944 million for an increase of 8,000. This four-week average is up 5,000 to 1.932 million.

FHFA House Price Index: Home prices were up 0.7% in May, according to the Federal Housing Finance Agency (FHFA). Prices are now up 6.8% on the year. The Pacific sank to 7.5%. The Mountain region remains the strongest at year-on-year appreciation of 8.9% on the year. The Middle Atlantic passed New England, reporting at 5.5%.

New Home Sales: New home sales rose 2.9% to a 610,000 annualized rate that is near Econoday’s top estimate. Surprisingly, selling prices surged 11.5% in the month to $345,800. While supply is very tight right now, sales relative to supply are unchanged at only 5.3 months.

Mortgage News

Mortgage rates continue to hold at year-to-date lows due to ongoing economic uncertainty. While last week’s report showed slightly higher mortgage rates, thanks to the Federal Reserve’s decision to raise short-term interest rates by a quarter-point, this week’s rates remained relatively flat, making it a good time to lock a low rate.

This week, 30-year fixed-rate mortgages (FRMs) averaged 3.90% with an average 0.5 point for the week ending June 22, 2017, down from the last week when it averaged 3.91%. A year ago at this time, 30-year FRMs averaged 3.56%.

In shorter terms, 15-year FRMs this week averaged 3.17%, 0.5 point down from last week, when it averaged 3.18%. A year ago at this time, 15-year FRMs averaged 2.83%.

Lastly, 5-year Treasury-indexed hybrid adjustable rate mortgages (ARMs) averaged 3.14% this week with an average 0.5 point, down from last week’s 3.15% average. A year ago at this time, 5-year ARMs averaged 2.74%.

Stock Market

Overall, the U.S. stock market closed slightly higher for the week, with the Dow and S&P posting small gains in the period.

The Dow Jones industrial average fell 2.53 points, or 0.01%, to close at 21,394.76. The S&P 500 gained 3.80 points to close at 2,438.30, a gain of 0.16% for the week. Lastly, the NASDAQ advanced 28.56 points, or 0.46%, to end at 6,265.25.

The Week Ahead

Tuesday, June 27

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

Consumer Confidence (10:00 a.m. ET) – The Conference Board compiles a survey of consumer attitudes on the economy. The Consumer Confidence Index is based on consumer perceptions of current business and employment conditions, as well as their expectations when considering business conditions, employment and income.

Wednesday, June 28

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.

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.

Pending Home Sales Index (10:00 a.m. ET) – The National Association of Realtors developed the Pending Home Sales Index as a leading indicator of housing activity. Specifically, it’s a leading indicator of existing home sales, not new home sales.

Thursday, June 29

Jobless Claims (8:30 a.m. ET) – New unemployment claims are compiled weekly to show the number of individuals filing 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.

Gross Domestic Product (GDP) (8:30 a.m. ET) – This measures the monetary value of all final goods and services produced within the U.S. This report is released on a quarterly basis.

Friday, June 30

Consumer Sentiment (10:00 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.

As you can see, not much to report this week, mostly due to the relatively flat changes in mortgage rates. However, things are about to heat up as the Fourth of July is right around the corner. If you’re planning a party, check out our tips for a spectacular outdoor Fourth of July Party. And as always, subscribe to the Zing Blog below for more home, money and lifestyle content.

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