Market Update - Quicken Loans Zing Blog

There’s not much going on this week in terms of hard numbers, but Market Update’s mission is much like that of the U.S. Postal Service. Neither rain nor snow nor sleet nor hail nor lack of economic data will stop us from delivering this Monday afternoon report to you.

Headline News

MBA Mortgage Applications: Refinance and purchase applications were both up 1.0%. Applications were up 0.9% overall last week as the average rate for a 30-year fixed mortgage held steady, up just one basis point to 3.68%.

Jobless Claims: Initial claims were down 4,000 last week to 259,000. The four-week average was down 1,750 to 261,250. Continuing claims also had a good week, falling 7,000 to come in at 2.144 million. The four-week moving average was down 4,000 to settle at 2.154 million.

Mortgage News

Mortgage rates were down just slightly last week. It remains a great time to lock in your rate because, frankly, they can’t get much lower than this.

30-year fixed-rate mortgages (FRMs) averaged 3.44% with an average 0.6 point for the week ending September 8, 2016. This is down from last week, when they averaged 3.46%. A year ago at this time, 30-year FRMs averaged 3.90%.

15-year FRMs this week averaged 2.76% with an average 0.5 point, down from last week when they averaged 2.77%. A year ago at this time, 15-year FRMs averaged 3.10%.

5-year Treasury-indexed hybrid adjustable rate mortgages (ARMs) averaged 2.81% this week with an average 0.4 point, down from last week when they averaged 2.83%. A year ago, 5-year ARMs averaged 2.91%.

Stock Market

In a week where there’s little economic reports of any real substance, the stock market will latch onto anything to give it a sense of direction. This week, the source of that direction came solely from Federal Reserve speakers. And the market apparently didn’t like what it heard, particularly on Friday.

All major stock indexes were down more than 2% to close the week, following speculation that the nation’s central bank might choose to increase interest rates at their upcoming September meeting rather than waiting until December.

The Dow Jones Industrial Average was down 394.46 points Friday to 18,085.45 points. This was a drop of 2.20% on the week. The S&P 500 had a pretty big drop as well coming in at 2,127.81, down 53.49 points and 2.39% on the week. Finally, the NASDAQ was down 2.36% from last Friday after finishing the day down 133.57 points to close at 5,125.91.

The Week Ahead

Tuesday, September 13

Quicken Loans Home Price Perception Index (HPPI) (10:00 a.m. ET) – Quicken Loans, the nation’s second-largest retail mortgage lender, releases data every month comparing what people think their homes are worth through appraisals. Similar opinions of value often make for smoother purchase and refinance transactions.

Quicken Loans Home Value Index (HVI) (10:00 a.m. ET) – Quicken Loans also releases data on home values, both on the national and regional level. Homeowners can gain a perception of whether values are increasing or decreasing, and get a better idea of where they stand in terms of equity.

Wednesday, September 14

MBA Mortgage Applications (7:00 a.m. ET) – The mortgage applications index measures applications at mortgage lenders. This is a leading indicator for single-family home sales and housing construction.

Thursday, September 15

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.

Producer Price Index (PPI) (8:30 a.m. ET) – The Producer Price Index measures the average change over time in prices received by domestic producers for the sale of goods and services.

Retail Sales (8:30 a.m. ET) – Retail sales measure total receipts from stores selling merchandise and related services to final consumers. Sales are measured by retail and food service stores. Data is collected from the Monthly Retail Trade Survey conducted by the U.S. Census Bureau.

Industrial Production (9:15 a.m. ET) – The Federal Reserve’s monthly index of industrial production – and the related capacity indexes and capacity utilization rates – covers manufacturing, mining, and electric and gas utilities.

Friday, September 16

Consumer Price Index (8:30 a.m. ET) – The consumer price index measures changes based on the price of a fixed basket of goods and services purchased by consumers.

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.

There’s a lot more going on next week, including our housing data, some key inflation, production and sales numbers. If all this sounds too dry and boring for you, maybe economics aren’t your thing. Don’t worry. We’ve got plenty of home, money and life content to share with you if you subscribe to the Zing Blog below. Have a good week!

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