Market Update - Quicken Loans Zing Blog

Headline News from Last Week

  • Pending Home Sales – The housing market appears to be split with sales of new homes weak but sales of existing homes still respectable. Pending sales came in at a solid 102.7 in June, down a bit from a revised 103.8 in May.
  • S&P Case-Shiller HPI – Home-price appreciation is slowing rapidly. With a seasonally adjusted -0.3%, this marks the first negative reading since January 2012.
  • Jobless Claims – Initial claims rose 23,000, while continuing claims jumped 31,000.
  • Employment Situation – Payroll growth was on the soft side in July, although still relatively positive. Total nonfarm payroll jobs rose 209,000 in July after a 298,000 gain in June.

Mortgage Rates

According to the Primary Mortgage Market Survey released by Freddie Mac, averaged fixed-rate mortgage rates changed little while remaining near their 2014 lows prior to a positive gross domestic product reading.

30-year fixed-rate mortgages (FRMs) averaged 4.12% with an average 0.6 point for the week ending July 31, 2014, down from last week when they averaged 4.13%. A year ago at this time, 30-year FRMs averaged 4.39%.

15-year FRMs this week averaged 3.23% with an average 0.7 point, down from last week when they averaged 3.26%. A year ago at this time, 15-year FRMs averaged 3.43%.

5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 3.01% this week with an average 0.5 point, up from last week when they averaged 2.99%. A year ago, 5-year ARMs averaged 3.18%.

1-year Treasury-indexed ARMs averaged 2.38% this week with an average 0.4 point, down from last week when they averaged 2.39%. At this time last year, 1-year ARMs averaged 2.64%.

Equity Market

The Dow Jones Industrial Average dropped 70 points Friday on what turned out to be a bad day all around for stocks. The S&P 500 fell nearly 3% for the week, while the NASDAQ decreased more than 2%.

The Week Ahead

Wednesday, August 6

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.

Thursday, August 7

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.

Consumer Credit (3:00 p.m. ET) – Consumer credit shows the dollar value of consumer installment credit outstanding. Changes in consumer credit indicate the state of consumer finances and portend future spending patterns.

Visit the Quicken Loans Zing Blog for updated information on important economic releases that affect your wallet.


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