Last week’s economic readings included readings from the National Association of Home Builders Housing Market Index, National Association of Realtors® report on sales of pre-owned homes and Commerce Department readings on housing starts and building permits issued. Weekly reports on mortgage rates and first-time jobless claims were also released.

Housing Market Challenges Catch Up to Builder Sentiment

According to the National Association of Home Builders, overall builder sentiment fell six points to November’s reading of 60. This was the largest decline in builder sentiment since 2016. Ongoing concerns over lot and labor shortages and rising costs of building materials were cited along with recently rising mortgage rates.

Demand for homes eased as potential buyers were sidelined by rising rates, shortages of homes for sale and approaching winter weather and holidays. Any Housing Market Index reading over 50 is considered positive, but steep drops in builder sentiment is considered a predictor of stabilizing market conditions.

National Association of Realtors®: Sales of Pre-Owned Home Sales Rise in October

Sales of previously-owned homes rose in October to a seasonally-adjusted annual rate of 5.22 million sales as compared to September’s reading of 5.15 million sales. Analysts estimated a reading of 5.18 million sales. While this reading suggests that buyers are active, an increase in home sales signals easing demand as compared to recent months when many buyers were sidelined due to extreme buyer competition for short inventories of homes for sale.

Mortgage Rates First-Time Jobless Claims Fall as New Jobless Claims Rise

Freddie Mac reported lower mortgage rates last week; rates for 30-year fixed rate mortgages averaged 4.81 percent, which was 13 basis points lower than the previous week. Rates for 15-year fixed rate mortgages averaged 4.24 percent and were 12 basis points lower.

Rates for 5/1 adjustable rate mortgages averaged 4.09 percent and were five basis points lower. Discount points averaged 0.40 percent for 30-year fixed rate mortgages, 0.50 percent for 15-year fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose last week to 224,000 new claims filed as compared to expectations of 215,000 claims. The prior week’s reading was 221,000 new claims filed.

What‘s Ahead

Economic readings set for release this week include Case-Shiller home price indices, new home sales and pending home sales. Weekly readings on mortgage rates and new jobless claims will also be released.

Last week’s economic news included readings on inflation, core inflation and retail sales. Weekly readings on mortgage rates and first-time jobless claims were also released.

Inflation, Retail Sales Rise in October

Commerce Department readings for October showed higher inflation and retail sales. Consumer Price Index rose by 0.30 percent and met expectations. September’s CPI reading was 0.10 percent. Core CPI, which excludes volatile food and energy sectors, also met expectations with a reading of 0.20 percent growth. September’s reading was 0.10 percent. Analysts attributed the highest reading in nine months to higher costs of fuel, rent and used cars.

Retail sales recovered from September’s negative reading of -0.10 percent and surpassed expectations of 0.60 percent growth with October’s reading of 0.80 percent. Higher fuel prices prompted the jump in retail sales after August and September readings were revised to negative readings. Recent declines in oil prices were expected to stabilize gas prices for consumers.

The reading for retail sales excluding autos also exceeded expectations with a reading of 0.70 percent. Analysts expected growth of 0.50 percent based September’s revised reading of -0.10 percent. Looking forward to the holiday shopping season, analysts expected robust readings for retail sales. Increased wages and a strong labor market were expected to help consumers during the holiday shopping season.

Mortgage Rates Stabilize

Mortgage rates were mostly unchanged last week, which provided a reprieve for home buyers. Freddie Mac reported that rates for 30-year fixed rate mortgages averaged 4.33 percent and was unchanged from the prior week. Mortgage rates for 15-year fixed rate mortgages rose three basis points and averaged 4.36 percent.

Rates for a 5/1 adjustable rate mortgage averaged 4.14 percent and were unchanged from the prior week. Discount points averaged 0.50 percent for 30-year mortgages and 0.40 percent for 15-year fixed rate mortgages. Discount points for 5/1 adjustable rate mortgages were 0.30 percent on average.

First-time jobless claims were higher last week with a reading of 216,000 new claims filed as compared to expectations of 210,000 new claims filed and the prior week’s reading of 214,000 new claims filed New jobless claims remained near historic lows despite last week’s increase in claims.

What’s Ahead

This week’s scheduled economic releases include readings from the National Association of Home Builders Housing Market Index and Commerce Department readings on housing starts and building permits issued. The National Association of Realtors® will release its report on sales of pre-owned homes. Weekly readings on mortgage rates and new jobless claims will also be released.

Last week’s scheduled economic news was slim last week. The Federal Open Market Committee of the Federal Reserve issued its post-meeting statement, weekly readings on average mortgage rates and first-time jobless claims were also issued.

FOMC: Fed Target Rate Unchanged, but Expected to Rise in December

The Federal Open Market Committee of the Federal Reserve announced that it did not raise the target federal funds rate but set the stage for raising the benchmark rate n coming months. The current range for the Fed rate us 2.00 percent to 2.00 to 2.25 percent. The Fed expects to increase rates three times in 2019 provided that strong economic conditions prevail.

FOMC members watch inflation, financial markets and domestic and global news to determine how or if to adjust the Federal Reserve’s target interest rates range.

Although FOMC releases projections based on current events and financial developments, changes to financial markets or global events could cause the Fed to hold off on raising interest rates.

Mortgage Rates, Hit Seven-Year High, New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates that pushed current mortgage rates to their highest levels in seven years. Rates for a 30-year fixed rate mortgages rose 11 basis points to an average of 4.94 percent; 15-year fixed rate mortgage rates averaged 4.33 percent, which was ten basis points higher than the prior week.

Rates for a 5/1 adjustable rate rose by 10 basis points to an average of 4.14 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell by 1000 new claims to 214,000 new claims filed. Analysts expected 210,000 new claims filed based on the prior week’s reading of 215,000 first-time jobless claims filed.

What‘s Ahead

Next week’s economic reports include readings on inflation, retail sales and weekly reports on mortgage rates and mortgage rates.

Last week’s economic news included readings for Case-Shiller Home Price Indices, Commerce Department readings on construction spending and the University of Michigan’s reading on consumer confidence. Labor sector reports on jobs growth and the national unemployment rate were posted along with weekly readings on mortgage rates and first-time jobless claims.

Case-Shiller: Home Price Growth Lowest in 20 Months; Construction Spending Falls

Home price growth hit its lowest pace in 20 months according to Case=Shiller’s 20-City Home Price Index for August. Home prices grew by 5.80 percent year-over-year as compared to July’s growth rate of 6.00 percent.

Analysts said that slowing growth of home prices could signal that home prices have reached their peak; Inventories of homes for sale are near the six-month inventory reading considered a normal inventory of homes for sale.

Sales have slowed in recent months due to rapidly rising home prices, high demand for homes and slim inventories of available homes. Increasing supplies of homes for sale are a sign that housing markets are balancing to accommodate prospective buyers.

Construction spending was flat in September at a seasonally-adjusted annual rate of $133 trillion. Analysts expected 0.20 percent growth in construction spending based on August’s growth rate of 0.80 percent. The slowdown in spending was likely due to seasonal dips in construction activity as winter approaches.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week; rates for 30-year fixed rate mortgages averaged three basis points lower at 4.83 percent. Rates for a 15-year fixed rate mortgage averaged 4.23 percent. Rates for 5/1 adjustable rate mortgages were 10 basis points lower at 4.04 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims were lower last week with 214,000 new claims filed; analysts expected 212,000 new claims to be filed based on the prior week’s first-time claims 216,000 new claims filed. Reported. The Commerce Department reported 250,000 public and private sector jobs added in October. ADP added 227,000 private sector jobs in October. The national unemployment rate was unchanged at 3.70 percent.

The University of Michigan’s Consumer Confidence Index reported an index reading of 137.90 in October as compared to September’s reading of 135.30 and an expected reading of 136.40.

What‘s Ahead

This week’s scheduled economic reports include the post-meeting statement from the Fed’s Federal Open Market Committee along with weekly reports on mortgage rates and new jobless claims.

Last week’s economic news included readings on sales of new homes and pending home sales. A reading on consumer sentiment was also released along with weekly reports on mortgage rates and new jobless claims.

Sales of New Homes Slide to Near 2 – Year Low

According to Commerce Department readings on new home sales, the pace of sales slipped close to a two-year low in September; new homes sold at a seasonally-adjusted annual pace of 553,000 sales.

September’s reading was 5.50 percent lower than for August and was 13.20 percent lower year-over-year. Analysts expected a reading of 620,000 sales; August’s reading showed an annual pace of 585,000 new homes sold.

Real estate pros reported a 7.10-month supply of available homes, which was a six-year high. A six-month supply of homes for sale is considered a normal inventory in many markets.

Home prices had a median of $320,000 in September, which was 3.50 percent lower year-over-year. Strong demand for homes coupled with limited supplies have caused home prices to rise and buyers to compete with cash-buyers and ever escalating home prices. Rising mortgage rates and few choices of available homes have sidelined moderate and first-time buyers.

Pending Home Sales Rise in September

The National Association of Realtors® reported rising pending home sales, which provided hope for lagging home sales. Pending sales are sales for which a purchase contract is signed but the sale has not yet closed. Pending home sales had an index reading of 104.6 in September as compared to 104.1 in August. No change from August’s reading was expected in September. The pending sales index pending home sales index was one percent lower year-over-year.

Pending sales rose 4.40 percent in the West; The Midwest posted a gain of 1.20 percent and the South posted a negative reading of – 0.40 percent. The South posted a negative reading of -1.40 percent in pending home sales.

Pending home sales are considered a predictor of completed sales and new mortgages.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week. Rates for a 30-year fixed rate mortgage rose one basis point to 4.86 percent; the average rate for a 15-year fixed rate mortgage rose three basis points to 4.29 percent and the average rate for 5/1 adjustable rate mortgages was four basis points higher at 4.14 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose last week to 215,000 new claims filed. Analysts expected no change from the prior week’s reading of 210,000 new claims filed. The University of Michigan reported a dip in its consumer sentiment index for October. September’s reading was adjusted from and index reading of 99 to 100.1. October’s reading was 99.  Lower consumer sentiment was based on stagnant wage growth according to analysts.

What‘s Ahead

This week’s scheduled economic news includes readings from Case-Shiller on home prices, Labor sector reports on private and public sector employment and the national unemployment rate.

Last week’s economic reports included readings on home builder confidence,sales of pre-owned homes and housing starts.  The Commerce Department also issued a report on building permits issued; weekly reports on mortgage rates and first-time jobless claims were also released.

Homebuilder Confidence Rises One Point

The National Association of Home Builders reported a reading of 68 for October,which surpassed August’s reading of 67. Any reading over 50 indicates most home builders are confident about housing market conditions. Builders cited ongoing headwinds including higher prices for materials,shortages of lots and labor and rising mortgage rates. Builders sought ways to provide more affordable housing options as they faced higher costs.

Regional readings of builder confidence readings,which are tracked on a three-month rolling average,were missed. The northeastern region gained three points for a reading of 57; the southern region gained one point for an index reading of 70. The midwestern region lost two points for a reading of 57. The western region was unchanged from September’s reading of 74.

Sales of Pre-owned Homes Slip toward 3 Year Low

The National Association of Realtors® reported fewer sales of pre-owned homes in September;5.15 million sales were reported on a seasonally adjusted annual basis as compared to August’s reading of 5.33 million sales. Analysts expected a reading of 6.27 million sales for September. Faced with high home prices and slim inventories of available homes,would-be buyers sidelined their searches for homes. Housing starts were 3.40 percent lower month-to-month and hit their lowest rate since November 2015.

According to the Commerce Department,housing starts also fell in September to 1.201 million starts on a seasonally adjusted annual basis. August’s reading was 1.268 million starts. Year-over-year,housing starts were 3.70 percent higher.,but fewer housing starts were bad news for housing markets as demand continued to exceed supplies of available homes. Building permits issued also fell in September to 1.242 million permits issued as compared to August’s reading of 1.249 million permits issued.

Mortgage Rates,New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week. Rates for 30-year fixed rate mortgages were five basis points lower at 4.85 percent; rates for a 15-year fixed rate mortgage averaged three basis points lower at 4.26 percent. The average rate for 5/1 adjustable rate mortgages was three basis points lower at 4.10 percent.

First-time jobless claims also fell last week to 210,000 new claims filed,which matched expectations but was lower than the prior week’s reading of 215,000 new claims filed.

What‘s Ahead

This week’s scheduled economic releases include readings on new and pending home sales along with weekly reports on mortgage rates and new jobless claims.

Last week’s economic reports included readings on construction spending and labor reports on public and private-sector job growth. The national unemployment rate was released along with weekly reports on mortgage rates and weekly jobless claims.

Construction Spending dips in September, but Residential Construction Spending Rises

Construction spending rose 0.10 percent in September, but residential construction spending fell 0.70 percent month-to-month. Construction spending was 4.10 percent higher year-over-year. January through August construction spending was 5.30 percent higher than for the same period in 2017.

Analysts estimated a shortage of approximately four million homes; which accentuates demand and drives prices up. In recent years, builders have concentrated on higher-end homes, but analysts said that a shift to building super-affordable homes may be in the works. High home prices and ever-increasing rents are squeezing moderate-income families; providing more affordable housing options could lessen demand and help home price growth to normalize.

Mortgage Rates Little Changed, New Jobless Claims Lower

Freddie Mac reported little change in mortgage rates; 30-year fixed rate mortgages averaged one basis point lower at 4.71 percent. The average rate for a 15-year fixed rate mortgage was also one basis point lower at 4.15 percent. Rates for 5/1 adjustable rate mortgages averaged 4.01 percent and were four basis points higher. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell last week to 207,000 new claims filed as compared to expectations of 213,000 new claims filed and the prior week’s reading of 214,000 claims filed. Analysts said that fewer claims were filed as the impact of Hurricane Florence diminished.

Labor Reports: Job Growth Mixed as Unemployment Rate Nears 49 Year Low

Commerce Department readings on public and private-sector job growth showed more private sector jobs, while the government reading for public and private sector jobs dropped/ ADP reported 230,000 more private-sector jobs in September; the government’s Non-Farm Payrolls report showed 134,000 new public and private sector jobs as compared to 270,000 new jobs in the prior month. Analysts expected 168,000 new public ad private sector jobs and said that the shortfall in job growth for September was a consequence of Hurricane Florence.

The National Unemployment Rate fell to 3.70 percent in September, which was the lowest reading in nearly 49 years.

What‘s Ahead

This week’s scheduled economic releases include readings on inflation, core inflation and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.

Last week’s economic releases included readings on the NAHB Housing Market Index, sales of pre-owned homes, and housing starts. Weekly readings on mortgage rates and first-time jobless claims were also released.

NAHB: Home Builder Confidence in Market Conditions Holds Steady

The National Association of Home Builders reported an index reading of 67 for September, which matched August’s reading. Growing concerns over impacts of tariffs on building material costs have slowed builders’ confidence in current and future market conditions.

Components of the NAHB Housing Market Index include readings on current conditions, which gained one point to 74; builder confidence in market conditions over the next six months gained two points to a reading of 74. The HMI reading for buyer traffic in new housing developments was unchanged with a reading of 49. Readings for buyer traffic are typically below the benchmark index reading of 50. Readings over 50 indicate that most home builders are confident about housing market conditions.

Builder confidence is considered an indication of future housing supplies as builders may adjust their construction plans on market conditions and building costs. The Commerce Department reported higher housing starts in August with a seasonally-adjusted annual rate of 1,282 million starts. Analysts predicated a rate of 1.249 million starts based on July’s reading of 1.168 million starts.

Sales of Previously-Owned Homes Unchanged

The National Association of Realtors® reported sales of previously-owned homes held steady in August, with homes sold at a seasonally-adjusted annual rate of 5.34 million sales. Analysts expected a reading of 5.37 million sales. Home sales have faced headwinds in recent years with high demand and low inventories of available homes driving up home prices faster than inflation and wage growth. Recently rising mortgage rates also impacted affordability and sidelined would-be buyers with moderate incomes.

Mortgage Rates Rise; New Jobless Claims Fall

Freddie Mac reported higher rates for fixed-rate mortgages with the average rate for a 30-year fixed rate mortgage rose five basis points to 4.65 percent. The average rate for 15-year mortgages also rose by five basis points to 4.11 percent. Rates for 5/1 adjustable rate mortgages dipped by one basis point to 3.92 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 201,000 claims filed as compared to expectations of 208,000 new claims filed and the prior week’s reading of 204,000 new claims filed. This was a 49-year low; analysts cited Hurricane Florence and overall economic expansion.

What‘s Ahead

This week’s scheduled economic news includes readings on home prices from Case-Shiller, new and pending home sales and inflation. Weekly reports on mortgage rates and new jobless claims will also be released.

Last week’s economic news included readings on consumer credit, inflation and consumer sentiment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Fed Reports Consumer Credit Jumps in July

The Federal Reserve reported that consumer credit rose from $9 billion in June to $17 billion in July. Analysts said a majority of consumer credit was issued for education loans and auto loans. June’s reading was revised downward to $8.50 billion from the original reading of $10.2 billion.

Credit card debt increased by 1.50 percent in July after declining by – 1.40 percent in June. Non-revolving consumer debt rose by 6.40 percent in July after growing 4.0 percent in June. July’s reading was the largest increase in eight months. The Fed’s Consumer Credit report does not include mortgage loans.

Inflation increased by 0.20 percent in August, which fell short of analyst expectations of 0.30 percent growth. Core inflation, which excludes volatile food and fuel sectors, rose by -0.10 percent and was lower than the expected reading of 0.20 percent growth. July readings for inflation and core inflation were 0.20 percent.

Mortgage Rates and Consumer Sentiment Rise as New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates for the third consecutive week. Rates for a 30-year fixed rate mortgage rose six basis points to an average of 4.60 percent; rates for 15-year fixed rate mortgages averaged seven basis points higher at 4.06 percent and mortgage rates for 5/1 adjustable rate mortgages averaged 3.93 percent and were unchanged from the prior week. Discount rates were reported at 0.50 percent for fixed-rate loans and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell last week to 204,000 claims filed against expectations of 210,000 new claims filed and the prior week’s reading of 205,000 first-time jobless claims filed.

Consumer sentiment rose in September. The University of Michigan reported an index reading of 100.8, which surpassed the expected index reading of 97.0 and the August reading of 96.2.

What‘s Ahead

This week’s scheduled releases include readings from the National Association of Home Builders, The National Association of Realtors® on sales of pre-owned homes and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims will also be released.