Home prices continued to edge higher in March due in a large part to low inventories of homes for sale on the market.
Home prices continued to edge higher in March due in a large part to low inventories of homes for sale on the market. The S&P Case-Shiller 20-City Home Price Index rose 6.8% from March 2017 to March 2018, matching the February gain. David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said, "Months-supply, which combines inventory levels and sales, is currently at 3.8 months, lower than the levels of the 1990s, before the housing boom and bust. Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising."
Consumers assessments of the current conditions regarding the U.S. economy is hovering near a 17-year high with a focus on better business conditions. The May Consumer Confidence Index came in at 128.0 in May, just above the 127.5 expected. The Conference Board said that overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term, which would support solid economic growth.
U.S. Stocks are lower to begin the holiday shortened week as political turmoil in Italy and Spain weigh on the equity markets. In addition, the on again off again summit between the U.S. and North Korea leads to uncertainty and the Stocks markets hate uncertainty. The closely watched Dow Industrial Average is down 400 points today. However, the average is up nearly 30% since the presidential election in late 2016.
A recent survey by First American Financial Corp. reveals that there is no housing affordability crisis.
A recent survey by First American Financial Corp. reveals that there is no housing affordability crisis. One of the reasons given in the survey is that while home prices have been increasing, so have incomes. The report went on to show that most states have reached their peak home price at 2007 levels, while incomes are much higher than they were in last decade.
U.S. Stocks are lower today as investors remain on edge about the U.S.-China trade talks coupled with less than impressive corporate earnings released this morning. Treasury Secretary Mnuchin is in Beijing today spearheading two days of trade talks between the two countries. The closely watched S&P 500 has fallen below a key technical level, which is ushering in more selling.
Mortgage rates edged slightly lower this week after three straight weeks where borrowing costs have risen, after being in an upward pattern since the year began. Freddie Mac reports that the 30-year fixed-rate mortgage fell three basis points to 4.55% with an average 0.5 in points and fees. Despite the higher rates this year, Freddie Mac reports that its data through April shows that first-time home buyers represent 46% of purchase loans, up from 43% over the same period a year ago.
The Bureau of Labor Statistics reports that the Consumer Price Index (CPI) fell 0.1% in March
The Bureau of Labor Statistics reports that the Consumer Price Index (CPI) fell 0.1% in March, below the expected gain of 0.1%. Lower gas prices at the pumps are to blame for the first decline in 10 months. When stripping out volatile food and energy, the Core CPI was in line at 0.2%. On a year-over-year basis, CPI rose 2.4% while Core CPI rose 2.1%, both 12-month highs. The Consumer Price Index measures the average price level paid by urban consumers (80% of the population) for a fixed basket of goods and services.
Heightened tensions over Syria between Russia and the U.S. are giving Bond prices a modest boost so far this morning. President Trump tweeted that Russia should get ready for a missile strike on Syria after the chemical attack over the weekend. Several Russian officials have threatened to retaliate if the U.S. strikes. U.S. Stocks are lower on the headlines.
Mortgage rates declined slightly in the latest week after climbing since the beginning of 2018. The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage with conforming loan balances ($453,100 or less) declined to 4.66% in the latest week from 4.69%. That rate carries at least an average 0.40 point added on top. Within the report it showed that both the refinance and purchase index fell 2%.
Job growth slowed in March due in part to some harsh weather across the nation.
Job growth slowed in March due in part to some harsh weather across the nation. The Bureau of Labor Statistics reports that there were 103,000 jobs created in March, lower than the 175,000 expected. On the surface, it looks like a disappointing report, but as you dig deeper there are positives within the numbers. February Non-Farm Payrolls were revised higher to 326,000 from 313,000 while January was revised lower to 176,000 from 239,000.
The U6 number, or total unemployment, fell to 8% from 8.2% while the Labor Force Participation Rate was steady at 62.9. Average hourly earnings came in at 0.3%, higher than the 0.2% expected while year-over-year wage growth ticked up to 2.7% from 2.6% percent in February. For the first three months of 2018, there was an average 202,000 jobs created, compared to 177,000 in the same period last year. The Unemployment Rate was unchanged at 4.1%.