Todd Grey

Equity Smart Home Loans

Looking For Something?

  • Home
  • Blog
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Apply
    • Short Application
  • Reviews
    • Read my Reviews
    • Leave a Review
  • Contact

May 20, 2019 by support

What’s Ahead For Mortgage Rates This Week – May 20th, 2019

What’s Ahead For Mortgage Rates This Week – May 20th, 2019Last week’s economic reports included readings from the National Association of Home Builders on housing market conditions, housing starts and building permits issued. Consumer sentiment was reported along with weekly readings on mortgage rates and new jobless claims.

NAHB: Builder Confidence Rises in May, Housing Starts Increase in April

The National Association of Home Builders Housing Market Index posted its highest reading in seven months in May as headwinds facing home construction waned. Lower mortgage rates were a positive sign. May’s reading rose three points to 66; component readings also rose.

The index of builder confidence in current housing market conditions rose three points to an index reading of 72; the reading for builder confidence in housing market conditions in the next six months rose one point to 72 and the confidence reading for buyer traffic in new housing developments rose two points to 49. The reading for buyer traffic seldom exceeds 50. A reading of 50 or above indicates positive builder sentiment.

Commerce Department reports for April showed higher readings for housing starts and building permits issued. 1.235 million housing starts were reported at a seasonally-adjusted annual pace. Analysts expected 1.209 million starts based on March reading of 1.16 million starts. Housing starts were six percent higher as compared to March, but remained lower year-over-year. Building permits reported in April rose from 1.288 million permits issued on a seasonally-adjusted annual basis in March to 1.296 million permits in April. 

Mortgage Rates, Mixed New Jobless Claims Fall

Freddie Mac reported lower fixed mortgage rates were lower last week, but the average rate for 5/1 adjustable mortgages rose. Rates for 30-year fixed rate mortgages averaged 4.07 percent and were three basis points lower. Rates for a 15-year fixed rate mortgage averaged 3.53 percent and were four basis points lower.

The average rate for 5/1 adjustable rate mortgages rose three basis points to 3.66 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

First-time jobless claims were lower last week with 212,000 claims filed as compared to expectations of 217,000 new claims filed and the prior week’s reading of 228,000 initial claims filed. Analysts said that the drop in first-time claims was a sign of economic strength and job markets.

Consumer sentiment hit a 15-year high according to the University of Michigan’s Consumer Sentiment

Index. reported an index reading of 102.40 in May; analysts expected a reading of 97.10 based on April’s reading of 97.20. Low unemployment fueled consumer sentiment, but analysts emphasized that consumers were surveyed before higher tariffs on China were announced; the costs of tariffs will be passed on to consumers, which is expected to dampen consumer sentiment.

What‘s Ahead

This week’s scheduled economic news includes readings on sales of new and pre-owned homes and minutes of the Fed’s FOMC Committee meeting. Weekly readings on mortgage rates and new jobless claims will also be released.

Spread the Love!

support

Filed Under: Financial Reports Tagged With: Financial Reports, Interest Rates, Mortgage Rates

Contact Todd

Equity Smart Home Loans
Mortgage Loan Officer
tgrey@equitysmartloans.com
Call (818) 435-6560
NMLS #1594405

Follow Me on Social Media!

How can I help?

  • This field is for validation purposes and should be left unchanged.

Categories

Archives

Recent Posts

  • The Top Smart Home Products You Should Know About
  • What Fees Are Involved With a Reverse Mortgage? Let’s Take a Look
  • Use A Fixer-Upper Mortgage To Expand Your Options
  • What’s Ahead For Mortgage Rates This Week – May 16, 2022
nmlsconsumeraccess.org
Equity Smart Home Loans NMLS ID: 856170
CA Bur of Real Estate - Real Estate Broker - DRE#01906808

Equal Housing Lender

Location


1499 Huntington Dr Ste 500
South Pasadena, CA 91030

Copyright © 2022 · Generate Pro on Genesis Framework · WordPress · Log in