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.
Image courtesy of digitalart at FreeDigitalPhotos.net
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:
For more economic and housing market news, sign up for our weekly economic update below.