What’s Ahead For Mortgage Rates This Week – December 29, 2014

December 29, 2014 by

What's Ahead For Mortgage Rates This Week December 29 2014Last week’s economic news included several housing related reports. Housing markets continue to cool as November reports on existing and new home sales fell below expectations. New Jobless claims were lower than expected by 10,000 claims. The details:

Existing and New Home Sales Down, FHFA House Price Index Up

The National Association of Realtors® reported that November sales of existing homes fell to 4.93 million sales against expectations of 5.18 million sales. October’s reading was revised from 5.25 million sales to 5.26 million. This was seen as an anomaly that may have occurred during uncertainty caused by volatile stock markets. Federal Reserve Chair Janet Yellen slow housing markets to tight lending standards in a recent statement.

FHFA reported that October home prices connected with Fannie Mae and Freddie Mac mortgages increased incrementally year-over-year. October house prices increased to 4.50 percent year-over-year as compared to September’s year-over-year house price increase of 4.40 percent.

November sales of new homes fell short of expectations according to the Commerce Department. 438,000 new homes were sold as compared to expectations of 450 new home sales and September’s reading of 445,000 new homes sold. This was the slowest rate of growth in four months.

New home sales declined in three of four regions. Readings for November were -12.00 percent in the Northeast, -6.40 percent in the Southeast, -6.30 percent in the Midwest. Sales of new homes rose by 14.80 percent in the West. Analysts typically caution against reading too much into volatile month-to-month figures, but they are concerned about longer-term sales trends too. Sales of new homes were 1.60 percent lower year-over-year.

The median sale price of new homes was $280,900 in November, which was 1.40 percent higher year-over-year.

Mortgage Rates Up, New Jobless Claims Down

Mortgage rates rose across the board according to Freddie Mac’s weekly survey of average mortgage rates. The average rate for a 30-year fixed rate mortgage increased three basis points to 3.83 percent. The average rate for a 15-year mortgage rose one basis point to 3.10 percent. The average rate for a 5/1 adjustable rate mortgage was six basis points higher at 3.01 percent. Discount points were 0.60 for 30 and 15-year fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

280,000 new jobless claims were filed last week, a seven-week low. Analysts expected 290,000 new claims based on the prior week’s reading of 289,000 new claims. The four-week rolling average of new jobless claims also showed improvement with 8500 fewer claims at 290,250 new jobless claims filed. Stronger labor markets are considered good news for housing markets as more consumers can afford to buy homes.

No economic reports were scheduled Thursday or Friday due to the Christmas holiday.

What’s Ahead

This week brings Case-Shiller Home Price reports, Pending Home Sales and Construction Spending. Freddie Mac mortgage rates and Weekly Jobless Claims will be released on Wednesday due to the New Year’s Day holiday on Thursday.

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What’s Ahead For Mortgage Rates This Week – December 22, 2014

December 22, 2014 by

What's Ahead For Mortgage Rates This Week December 22 2014

Last week’s scheduled economic events were few but informative. Housing related reports included the National Association of Home Builders/Wells Fargo Housing Market Index for December, which stayed close to a nine-year high reading of 59 in September. December’s reading was 57 and fell two points shy of the expected reading of 59. November’s reading was 58. Readings above 50 indicate that more builders are positive about market conditions than those who are not.

Housing Starts for November were lower according to the Department of Commerce’s report released Tuesday. The reading for November was 1.028 million starts on a seasonally adjusted annual basis. Analysts expected a reading of 1.035 million housing starts based on October’s level of 1.045 million starts.

Fed Confident, but Watchful of Economic Conditions

The Fed’s Federal Open Market Committee (FOMC) released its statement at the conclusion of its final meeting in 2015. Fed Chair Janet Yellen also gave a press conference that primarily supported information contained in the statement. The Fed did not foresee rising the target federal funds rate until mid to late 2015, and said that no changes were likely to be made at the first two FOMC meetings of the year. The target federal funds rate remains steady at 0.00 to 0.250 percent. FOMC members noted improvement in labor markets, but said that housing continued to recover at a slow rate. The Fed repeated its customary statement that FOMC members would monitor ongoing economic conditions and developments as part of any decision to change monetary policy. Chair Janet Yellen affirmed the committee’s position in her press conference.

Mortgage Rates, Jobless Claims Fall

Mortgage rates fell according to Freddie Mac. The average rate for a 30-year fixed rate mortgage was 3.80 percent as compared to the prior week’s reading of 3.93 percent. The average rate for a 15-year fixed rate mortgage was 3.09 percent, which was 11 basis points below the prior week’s reading. 5/1 adjustable rate mortgages had an average rate of 2.95 percent; this was three basis points lower than the previous week. Discount points remained steady at 0.50 percent with the exception of average points charged for a 15-year mortgage, which increased to 0.60 percent.

Weekly jobless claims fell to 289,000 against expectations of 295,000 new jobless claims; expectations were based on the prior week’s reading of 295,000 new claims. Analysts cautioned that weekly jobless claims readings can be particularly volatile during the holiday and early winter season.

What’s Ahead

Economic news scheduled for next week includes the National Association of Realtors® report on November sales of existing homes and November sales of new homes, which is issued by the Department of Commerce. Consumer sentiment, consumer spending and core inflation reports will also be issued next week. No economic reports will be issued Thursday or Friday due to the Christmas holiday.

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FOMC Statement: No Year-End Surprises

December 18, 2014 by

You Ask, We Answer: How to Choose Between Expanding Your Current Home and Buying a New OneThe Federal Open Market Committee (FOMC) said in its last statement for 2014 that although economic conditions have improved at a moderate pace, the Fed believes that the target federal funds rate of between 0.00 and 0.25 percent remains “appropriate.” While labor markets show expanding job growth and lower unemployment rates, FOMC members noted that housing markets are recovering slowly.

Inflation remains below the committee’s target rate of two percent; this was attributed to lower fuel costs. Household income and business investment were seen as increasing, and the underutilization of workforce resources was described as “diminishing.” These developments indicate better economic conditions for consumers, business and job seekers, as employers picked up the pace of hiring.

Target Fed Funds Rate Unchanged

No year-end changes in monetary policy were made; the Fed issued its usual statement that developing economic conditions would guide the Committee’s decisions concerning the target federal funds rate. The FOMC statement said that changes could be made according to progress toward or away from achieving the Fed’s dual mandate of maximum employment and price stability. No specific date was given for raising the target federal funds rate. The FOMC statement noted that no change is likely as long as the inflation rate remains below the Fed’s longer-term target of two percent.

The FOMC statement was followed by a press conference given by Janet Yellen, fed chair and Chair of the FOMC. 

Fed Chair: Oil Price Influence on Inflation “Transitory” 

Janet Yellen, chair of the Federal Reserve and FOMC, said that she expects lower oil prices to be a transitory influence on inflation, which continues to run lower than the Fed’s target rate of two percent. Media representatives noted that Chair Yellen replaced the phrase “considerable time” with “patient” in reference to when the Fed might raise the target federal funds rate.

Ms. Yellen said that the gross domestic product (GDP) had increased by 2.50 percent over the prior four quarters ending with the third quarter of 2014, and said that the economy continues to grow at approximately the same pace. Concerning falling inflation, Ms. Yellen said that she expected the inflation rate to increase after transitory influences including oil prices dissipate. The Fed Chair said that she perceived lower oil prices to be a positive development for the U.S. economy on net.

In response to questions about when the Fed would raise the target federal funds rate, Chair Yellen said that it would likely occur sometime in 2015 and also mentioned “sometime after the next couple of FOMC meetings. This suggests that mid 2015 may bring a change, but Ms. Yellen repeated the Fed’s oft-stated position that continual review of economic conditions and developing trends would impact any decision to change or not change the federal funds rate.

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Home Builder Index Stays Near Nine Year Peak

December 16, 2014 by

Home Builder Index Stays Near Nine Year Peak

Home Builder Sentiment slipped to a reading of 57 in December according to the National Association of Home Builders Housing Market Index. November’s reading of 58 prompted analysts to project a reading of 59 for December. The latest reading marks the sixth consecutive month for readings above 50. Any reading over 50 indicates that more builders are positive about housing market conditions than not.

The one-point decline in December’s reading kept the NAHB Housing Market Index within two points of a nine-year high reached in September.

NAHB: Housing Market Index Suggests Slow Return to Normalcy

NAHB’s chief economist, David Crowe, said that December’s reading was in line with NAHB’s assessment that housing markets are on a “slow march back to normal.” Home builder confidence in conditions contributing to the NAHB Housing Market Index also fell in two categories while remaining unchanged in one.

The gauge of builder confidence in current market conditions moved from last month’s reading of 62 to 61. Builder confidence in upcoming home sales fell from 65 to 64, while confidence in prospective buyer traffic was unchanged at a reading of 45. These results are consistent with real estate market trends slowing during the holiday season and winter months.

Builders Challenged in 2014, Better Conditions Expected in 2015

Analysts said that steady builder confidence may be a result of builders surviving a tough year in 2015. Market conditions, unpredictable interest rates and higher costs of supplies along with high unemployment subdued builder confidence during 2014. The New Year brings prospects of easing mortgage standards and better labor markets, which are expected to boost builder confidence as more home buyers enter the market for new homes.

The Commerce Department is set to release Housing Starts for November on December 16; analysts expect an increase to 1.035 million starts on a seasonally adjusted annual basis as compared to October’s reading of 1.01 million starts. A positive reading for housing starts could further bolster home builder confidence for future readings.

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What’s Ahead For Mortgage Rates This Week – December 15, 2014

December 15, 2014 by

What's Ahead For Mortgage Rates This Week December 15 2014

Although there were few scheduled economic events related to mortgages and housing, last week brought an article about housing projections for 2015. Other news included increased job openings along with lower than expected jobless claims and higher mortgage rates.

Job Openings, Retail Sales and Mortgage Rates Rise

The U.S. Department of Commerce reported that November job increased to 4.80 million as compared to October’s reading of 4.70 million job openings. Weekly jobless claims corresponded as new claims fell to 294,000 as compared to the prior week’s reading of 297,000 new jobless claims. This was the lowest reading for new jobless claims in three weeks. Analysts had expected a reading of 206,000 new jobless claims.

Further signs of economic strengthening were seen in the retail sector. Retail sales posted their strongest gains in eight months with a gain of 0.70 percent in November according to the Commerce Department. November’s reading exceeded expectations of a 0.40 percent increase which was based on October’s original reading of a 0.30 percent increase in retail sales. November’s retail sales (excluding automotive sales) rose by 0.50 percent, which was the highest reading since June. October’s reading was later revised to 0.50 percent. Automotive sales rose by 1.70 percent in November, which was their highest reading since August.

Amidst last week’s economic gains, mortgage rates also rose. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage was 3.93 percent, a gain of four basis points over the previous week. The average rate 15-year mortgage gained 10 basis points at 3.20 percent. The average rate for a 5/1 adjustable rate mortgage rose by four basis points to 2.94 percent. Average discount points for all three loan types remained steady at 0.50 percent.

Analysts Offer Housing Predictions for 2015

Fortune reported predictions made by analysts during a panel discussion on housing trends. David M. Blitzer, chairman of the S& P Index Committee, characterized next year’s housing trends as “mysterious.” Analysts pinpointed the influence of the millennial generation as gaining strength in housing markets. As millennials begin to buy their first homes, their tastes and preferences are expected to overshadow the long-held influence of the baby boomer generation. Millennial influence includes a trend called millennial mis-match; Millennials prefer to live in high-cost areas including New York City, Honolulu, Hawaii and Austin, Texas, but their status as first-time home buyers conflicts with this preference. Other trends discussed by analysts attending the panel discussion included:

Mortgage rates predicted to rise: Stronger economic conditions and no Federal stimulus are expected to contribute to rising mortgage rates, which some analysts said were expected to rise to approximately 5.00 percent for a 30-year fixed rate mortgage.

Home price growth and affordability expected to decline: Home prices gained 6.40 percent year-over-year in October 2014 as compared to growth of 10.60 percent for the same period in 2013. High demand for homes in pricey markets coupled with rising mortgage rates are expected to price the middle class out of many high-demand markets.

What’s Ahead

This week’s scheduled economic events include the Wells Fargo/National Association of Home Builders Housing Market Index report for December and the Commerce Department’s December report on Housing Starts. The Federal Open Market Committee (FOMC) of the Federal Reserve will release its customary statement after its meeting concludes on Wednesday. The FOMC statement will be followed by a press conference given by Fed chair Janet Yellen, who also chairs the FOMC.

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What’s Ahead For Mortgage Rates This Week – December 8, 2014

December 8, 2014 by

What's Ahead For Mortgage Rates This Week December 1 2014

Last week’s economic reports related to housing and mortgages were few, but construction spending, the Fed’s Beige Book report, non-farm payrolls and the national unemployment report indicated trends for the end of the year.

Construction Spending Increases

U.S. construction spending rose by 1.10 percent in October according to the Commerce Department. This reading translates to a seasonally-adjusted annual rate of $971 billion. Analysts had expected an increase of 0.70 percent based on September’s original reading of -0.40 percent, but September’s reading was revised to -0.10 percent on Tuesday. Private spending on residential projects increased 1.30 percent.

Federal Reserve Beige Book Indicates Economic Improvement, or Not

Oil prices were cited by participants in the Federal Reserve’s survey of regional business leaders; Texas and the Gulf coast areas noted that falling oil prices were a threat to those economies, while other participants said that lower prices at the gas pump were putting more cash in consumers’ pockets. The report noted upward pressure on both minimum wages and higher wages for skilled workers. Wages have remained mostly flat while consumer costs have increased; higher wages can provide more discretionary income for consumers and may build confidence for would-be home buyers that have been waiting for more positive economic trends.

Freddie Mac: Mortgage Rates Down

Freddie Mac’s weekly survey of average mortgage rates brought good news for home buyers and homeowners seeking to refinance their mortgages. The average rate for a 30-year fixed rate mortgage fell from 3.97 percent to 3.89 percent. The average rate for a 15-year fixed rate mortgage fell to 3.10 percent from last week’s reading of 3.17 percent and the average rate for a 5/1 adjustable rate mortgage dropped to 2.94 percent from last week’s reading of 3.01 percent. Average discount points were unchanged for all loan types at 0.50 percent.

Labor Data Mixed, Unemployment Rate Unchanged

Weekly jobless claims beat expectations by 1000 fewer jobless claims with a reading of 297,000 new claims against expectations of 298,000 new claims. The prior week’s reading was higher at 314,000 new jobless claims. The Commerce Department also released Non-Farm Payrolls figures for November with 321,000 jobs added against expectations of 235,000 jobs added and October’s reading of 243,000 jobs added. Holiday hiring and climate related slowdowns are expected to impact year-end labor statistics. Analysts prefer to look at trends occurring over several months to determine labor trends.

What’s Ahead

Next week’s scheduled economic news includes reports on November retail sales and consumer sentiment in addition to Freddie Mac’s mortgage rates survey and the Commerce Departments weekly jobless claims report.

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What’s Ahead For Mortgage Rates This Week – November 24, 2014

November 24, 2014 by

Whats Ahead For Mortgage Rates This Week November 24 2014Last week’s scheduled economic news included the NAHB/Wells Fargo Housing Market Index, Housing Starts and Existing Home Sales. FOMC meeting minutes were released along with weekly Freddie Mac mortgage rates and weekly jobless claims.

In addition, the National Association of Realtors® suggested that FHA should lower its mutual mortgage insurance premiums (MMI) as its fund for paying claims has normalized since recession.

Homebuilder Confidence Nears Nine-Year High

The National Association of Home Builders/ Wells Fargo Housing Market Index achieved a reading of 58 for November. This was two points higher than the expected reading of 56 and four points above September’s reading. This was the fifth consecutive month of readings above 50.

Readings above 50 indicate that more builders are confident about housing market conditions than not. Components of the index improved with builder confidence in present sales of new homes up 5 points to a reading of 62, confidence in sales over the next six months rose by two points to 66, and the reading for prospective buyer traffic rose four points to 45.

Housing Starts Slow, Existing Home Sales Suggest Stronger Housing Market

Housing starts were lower by 2.80 percent in October at a seasonally-adjusted rate of 1.01 million against an expected reading of 1.03 million and September’s reading of 1.04 million homes started. October’s reading was affected by a 15.50 percent drop in multi-family construction, but single-family home construction increased by 4.20 percent. Analysts noted that the multi-family sector is notoriously volatile.

The National Association of Realtors® reported that the seasonally-adjusted annual rate of existing home sales for October exceeded the expected reading of 5.15 million with 5.26 million existing homes sold. October’s reading also surpassed September’s reading of 5.17 million previously-owned homes sold. October’s reading represented a 1.50 percent increase over September sales of existing homes, and was the highest reading since September 2013.

The median price of previously-owned homes rose to $208,500 in October, which represented a 5.50 percent increase year-over-year. The inventory of homes for sale is higher with a 5.1 month supply of homes available, which was a year-over-year increase of 5.20 percent. Higher inventories of homes available and low mortgage rates were seen as factors contributing to more home sales.

Builders, Realtors® Call for Lower FHA Premiums

Kevin Kelly, chairman of the National Association of Home Builders and the National Association of Realtors® called for the FHA to lower its mortgage insurance premiums. The cost of FHA loans, which require borrowers to pay an upfront mortgage insurance premium and annual premiums that are pro-rated and added to monthly mortgage payments, were seen as an obstacle to first-time and moderate income homebuyers. This request was based on a report that indicated the FHA fund for paying mortgage insurance claims is in the black for the first time since 2011.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported that average mortgage rates fell across the board on Thursday with the average rate for a 30-year fixed rate mortgage lower by two basis points at 3.99 percent, and the average rate for a 15-year fixed rate mortgage lower by three basis points at 3.17 percent. The average rate for a 5/1 adjustable rate mortgage dropped by one basis point to 3.01 percent. Average discount points remained the same for all loan types at 0.50 percent.

The Commerce Department reported that new jobless claims fell to 291,000 from the prior week’s reading of 293,000. Analysts expected a reading of 280.000 new jobless claims, but this was the tenth consecutive week of readings for fewer than 300,000 new jobless claims. The four-week rolling average of new claims rose by 1750 to a reading of 287,500. The four week average reduces the volatility of weekly jobless claims and provides a more accurate reading of unemployment trends.

What’s Ahead

Next week’s scheduled events include the Case-Shiller 10 and 20-City Home Price Indices, FHFA’s House Price Index and New and Pending Home Sales reports. There are no reports set for Thursday or Friday due to the Thanksgiving Holiday.

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FOMC Minutes: Economy Growing, Housing Lags

November 20, 2014 by

FOMC Minutes Economy Growing Housing LagsMinutes of the Federal Open Market Committee (FOMC) meeting held October 28 and 29 were released Wednesday. The report suggests that the U.S. economy continues to improve, although the annual inflation rate remains near 1.50 percent and short of the committee’s goal of 2.00 percent. Falling crude oil prices were cited as a cause of faltering inflation rates. The minutes indicated that FOMC members expect inflation to remain below the 2.00 percent benchmark for the next year or so.

The minutes did not reveal an exact date for raising the target federal funds rate, which is currently 0.00 to 0.250 percent, but analysts expect a rate change in mid-to-late 2015. One committee member said that the Fed should commit to keeping the target federal funds rate at its present level until inflation reaches the Fed’s goal of 2.00 percent.

Job Markets Improve, Mortgage Rates Fall

FOMC members said that labor markets had improved “somewhat further.” The minutes noted that the national unemployment rate had declined to 5.90 percent in September, which was lower than the FOMC goal of 6.50 percent for national unemployment. While this was good news, FOMC discussed the fact that a significant number of part-time workers suggested under-utilization of the labor force. A combination of stronger labor markets and a 0.25 percent reduction of mortgage rates during the intermeeting period between September 17 and October 28 were seen as positive for housing markets, but the committee noted that mortgage lending standards for single-family homes had not changed much. Lending requirements were more accommodative for commercial real estate.

QE Ends, FOMC Seeks to Maintain “Accommodative” Financial Conditions

FOMC members voted to end asset purchases made under the Fed’s quantitative easing program, but said that ongoing reinvestment of principal payments on bonds and MBS with the goal of maintaining “sizeable” holdings of long-term securities. The minutes indicated that this would help maintain “accommodative” financial conditions.

The committee agreed to re-assert its position that although national unemployment and inflation may achieve or surpass FOMC goals, the committee could maintain the target federal funds rate at current levels for “some time” after the benchmarks are achieved. Ultimately, the FOMC’s decision to change the target federal funds rate will include thorough and ongoing review of global and domestic economic developments.

Committee members concluded this meeting with a decision to set the next FOMC meeting for December 16 and 17.

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What’s Ahead For Mortgage Rates This Week – November 17, 2014

November 17, 2014 by

Negotiation Tips: How to Ask the Seller to Pay the Closing Costs Last week’s housing related news was lean, with no scheduled reports released other than Freddie Mac’s primary mortgage market survey.

We’ll start with some good news. The University of Michigan / Thompson-Reuters Consumer Sentiment Index reported its highest reading in more than seven years. November’s reading of 89.4 surpassed the expected reading of 88.0 and was higher than October’s reading of 86.9

Mortgage Rates Near 4.00 Percent, Weekly Jobless Claims Up

Freddie Mac reported a one-basis point drop in the average rate for 30-year fixed rate mortgage from 4.02 percent to 4.01 percent; the average rate for a 15-year fixed rate mortgage also fell by one basis point to 3.20 percent.

The average rate for a 5/1 adjustable rate mortgage rose by 5 basis points to 3.02 percent. Discount points for all three loan types held steady at an average of 0.50 percent.

Weekly jobless claims rose by 12,000 to 290,000 against expectations of 280,000 new jobless claims filed and the prior week’s reading of 278,000.

Last week’s report was the ninth straight week that new jobless claims came in under 300,000. The reading for the four-week rolling average was 285,000 new jobless claims, which represented an increase of 6,000 new claims.

What’s Ahead

This week’s number of scheduled economic reports will be more robust. The NAHB Housing Market Index, Housing Starts and the National Association of REALTORS® Existing Home Sales reports will be released.

The minutes of the most recent Federal Open Market Committee (FOMC) meeting of the Federal Reserve will also be released along with weekly mortgage rates and jobless claims data.

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What’s Ahead For Mortgage Rates This Week – November 10, 2014

November 10, 2014 by

Negotiation Tips: How to Ask the Seller to Pay the Closing CostsLast week’s economic reports contained mixed reports indicating that the economy continues to recover with occasional “blips” in its progress. Construction spending was lower than expected.

A Federal Reserve survey of senior loan officers indicated that credit standards remain strict for mortgages and other types of lending. According to the survey, a “modest net fraction” of large banks had eased credit standards for prime mortgage lending.

First-Time Homebuyers Struggle as Market Share Hits 27-Year Low

The National Association of REALTORS® (NAR) reported that first-time buyers’ share of home purchases has slipped to 33 percent, which was its lowest level in 27 years. According to Lawrence Yun, chief economist for the NAR, high home prices and mortgage insurance costs along with strict mortgage credit requirements continue to sideline first-time buyers.

In other news, the Department of Commerce reported that construction spending dropped by 0.40 percent in September as compared August’s reading of -0.50 percent and an expected reading of +0.70 percent. September’s reading represented a seasonally-adjusted annual construction spending rate of $950.90 billion.

Mortgage Rates: Average 30-Year Mortgage Rate Tops Four Percent

Average mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose by four basis points to 4.02 percent. The average rate for a 15-year fixed rate mortgage rose by eight basis points to 3.21 percent, while the average rate for a 5/1 adjustable-rate mortgage rose by three basis points from 2.94 percent to 2.97 percent. Average discount points remained at 0.50 percent for all three types of mortgages.

This is not altogether bad news, as higher mortgage rates are typically prompted by improving economic conditions. 2014 started with an average rate for 30-year fixed rate mortgages of 4.05 percent.

Labor Reports Suggest Stronger Jobs Markets

Last week’s economic news included several reports that indicated improvements in U.S. labor markets. The Department of Labor released its Non-Farm Payrolls report for October with a reading of 214,000 jobs added against expectations of 243,000 jobs added and September’s reading of 256,000 jobs added. While this appears contrary to stronger labor markets, analysts said that a new low in the national unemployment rate of 5.80 percent indicated that fewer new jobs were needed. October was the ninth consecutive month reporting 200,000 or more jobs added.

The ADP employment report, which tracks payrolls in the private sector, reported an increase of 5,000 jobs from September’s reading of 225,000 jobs to October’s reading of 230,000 jobs.

Weekly jobless claims fell to 278,000 against expectations of 285,000 new jobless claims filed and the prior week’s reading of 288,000 new claims filed. This reading supports a stronger jobs market and may compel would-be home buyers to enter the market as concerns about unemployment and jobs wanes.

The national unemployment rate reached a new low with October’s reading of 5.80 percent. In related news, Fed Chair Janet Yellen indicated in a speech on Friday that the target Federal funds rate will likely rise in 2015, but she gave neither a prospective date nor details about how much the benchmark federal funds rate may rise.

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