Weekly Economic Review: June Home Sales Data Mixed

Posted by Laine Smith on 7/26/15 4:11 PM

Topics: Economy

After weeks of volatility due to the debt crisis in Greece, last week was relatively quiet for mortgage rates. With a light economic calendar and mixed home sales data, mortgage rates ended the week a little lower.

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Existing Home Sales were strong in June with an increase of 3.2 percent, which is the best since the bubble days of February 2007. Year-over-year sales are up 9.6 percent. Home-price appreciation of existing homes is up 6.5 percent, as well, leaving the median price in June at $236,400, an all-time high.

New Home Sales plunged 6.8 percent to a lower-than-expected rate of 482,000. While volatility is common for new home sales, there was a surge in supply of new homes on the market, up 3.4 percent in June. A larger supply could indicate a larger amount of sales in the months ahead.

Last week in the economy:

  • Mortgage rates (the national average) fell 0.03% (3 basis points).
  • After weeks of volatility, the purchase index of MBA Mortgage Applications saw little change in the latest week with a 1 percent gain.
  • Initial Jobless Claims fell 26,000 in the July 18 week to a 42-year low of 255,000. In comparison the 4-week average is less startling, down just 4,000 that is little changed from the month-ago comparison.
  • The Federal Housing Finance Agency (FHFA) House Price Index showed home price appreciation was up 0.4 percent in May. The year-over-year reading is up 5.7 percent which is the best it's been since April 2014.

What's on the economic calendar for the week of July 27, 2015:

Tuesday: Consumer Confidence will be released.
Wednesday: MBA Mortgage Applications, the FOMC Meeting Announcement, and Pending Home Sales Index will be updated.
Thursday: Jobless Claims and GDP will be released.
Friday: Consumer Sentiment will be released.

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