Mortgage rates trended slightly upward last week, but still remain in a historically low range. The home builders’ sentiment index reached a record high for the third month in a row. Housing starts and building permits increased. Mortgage application submissions for new purchases dropped slightly, while refinance submissions rose. Jobless claims declined. Existing home sales increased for the fourth consecutive month.
MORTGAGE RATES CURRENTLY TRENDING
THIS WEEK'S POTENTIAL VOLATILITY
Redfin CEO expects “absolutely insane” housing demand to last into 2021.Watch Now >>
Fannie Mae and Freddie Mac discuss the controversial refinance fee.Read Now >>
The National Association of Home Builders’ (NAHB) housing market sentiment index reported a month-over-month increase of two points, reaching 85 in October.
In September, housing starts climbed at a seasonally adjusted rate of 1.42 million. Month-over-month housing starts rose 1.9%, while year-over-year they increased by 11%. Building permits climbed as well, reaching a seasonally adjusted rate of 1.55 million. This marked a 5% increase from the number of building permits in August, and an 8% rise from last year. Single-family housing starts were up 22% from last year, while multifamily starts were down 17%.
For the week ending 10/16, mortgage application submissions had a composite decrease of 0.6%. New purchase submissions dropped 2.0 % for the second week in a row, but refinance submissions increased by 0.2%.
For the week ending 10/17, initial jobless claims dropped to the lowest levels since the coronavirus pandemic began. For the first time since March, initial jobless claims dropped below 800,000 – hitting 787,000. For the week ending 10/10, continuing jobless claims sank to 8.37 million – a 1.02 million drop from the week before.
Existing home sales surged in September, with a 9.4% month-over-month increase. Reaching a seasonally adjusted level of 6.54 million, existing home sales were 21% higher than last year. More than 70% of the homes on the market in September were sold in less than one month.
This week's important economic reports include:
New homes sales
Case-Shiller home price index
Consumer confidence index
MBA application submissions
Gross domestic product
Pending home sales index
Consumer sentiment index
WEEK OF OCTOBER 26, 2020
Danny Caro NMLS# 1120188 | Branch NMLS No. 1793450 Branch Manager | CMG Financial Mobile:
11331 James Watt Drive Bldg F200 | El Paso, TX 79936