Market Update - Quicken Loans Zing Blog

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Quicken Loans Home Price Perception Index (HPPI): Homeowners overvalued their homes by 1.99% in February. This is the first time in six months that the gap between appraisers and homeowners has gotten wider. Homes were 0.24% more overvalued in February than they were in January. Taking a look at regional data, the split in the West was 1.74%, while Southern properties were 1.91% overvalued. They were followed by the Northeast and Midwest at 2.16% and 2.23% overvalued. At the metropolitan level, San Jose, CA homeowners continue to have the most undervalued homes, with estimates coming in 4.35% below appraiser opinion. On the other hand, Denial River apparently runs strong in Philadelphia where homeowners continue to overvalue their homes by 3.71%. Residents in Miami were the closest to par: their opinions came in just 0.13% below those of appraisers.

Quicken Loans Home Value Index (HVI): Home values were up 1.51% nationwide in February. Values are up 3.9% over the same time last year. The Midwest had the biggest value gain, up 3.37%. Meanwhile, the West is a distant second with a 2.24% gain, followed by the Northeast at 2.04%. The South actually saw a small decline of 0.06%.

MBA Mortgage Applications: Mortgage applications were 0.2% this week on the strength of a 4.0% increase in purchases. Refinances were down 2.0% as the average rate on a 30-year-fixed mortgage went up six basis points to 3.89%.

Jobless Claims: Initial jobless claims fell by a very steep 18,000 last week to come in at 259,000. The four-week average was down 2,500 to 267,500. This is 15,000 below where it was at this time last month. Meanwhile, continuing claims were down 32,000 to 2.23 million. The four-week average was down 4,500, coming in at 2.25 million.

Mortgage News

Mortgage rates moved slightly higher this week.

30-year fixed-rate mortgages (FRMs) averaged 3.68% with an average 0.5 point for the week ending March 10, 2016, up from last week when they averaged 3.64%. A year ago at this time, 30-year FRMs averaged 3.86%.

15-year FRMs this week averaged 2.96% with an average 0.5 point, up from last week when they averaged 2.94%. A year ago at this time, 15-year FRMs averaged 3.10%.

5-year Treasury-indexed hybrid adjustable rate mortgages (ARMs) averaged 2.92% this week with an average 0.4 point, up from last week when they averaged 2.84%. A year ago, a 5-year ARM averaged 3.01%.

Stock Market

The stock market has been beholden to oil lately. As the black gold goes, so do stocks. The indexes posted their fourth consecutive week of gains.

The Dow Jones Industrial Average was up 218.18 points Friday to close at 17,213.31. This shows up 1.2% for the week. The S&P 500 was 32.62 points higher, finishing the day at 2,022.19, up 1.1% since last Friday. The NASDAQ was up 86.31 points to 4,748.47. This was up 0.67% for the week.

The Week Ahead

Tuesday, March 15

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 of goods and services.

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 measured by retail and food services stores. Data is collected from the Monthly Retail Trade Survey conducted by the U.S. Census Bureau.

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 separate diffusion indexes, including present sales of new homes, sales of new homes expected in the next six months and traffic of prospective buyers in new homes.

Wednesday, March 16

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.

Housing Starts (8:30 a.m. ET) – A housing start is registered when the construction of a new residential building begins. The start of construction is defined as the beginning of excavation of the foundation for the building.

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.

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.

Thursday, March 17

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. An increasing trend suggests a deteriorating labor market. The four-week moving average of new claims smooths out weekly volatility.

Friday, March 18

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.

In contrast to this week, it looks like next week is pretty packed. If you want even more great stuff outside of economics and mortgage, subscribe to the Zing Blog below. We have lots of tips for your home, money and life.

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