This quick update on what happened this week in the housing and financial markets from Erin Dickinson of Investors Mortgage:
- Low trading volume and lack of overseas concerns have led to mortgage bond market stability this week. Rates have been less volatile as a result.
- Jobless claims fell to lowest levels seen since 1973. Positive jobs data supports the Fed’s plans for increasing policy rates.
- Oil prices have tumbled to the lowest prices since April. Combined with a strong dollar, this could offset recent employment data and help mortgage rates improve.
- In testimony to Congress, Fed Chair Janet Yellen signaled that the Fed would likely raise policy rates later this year. The first hike is expected in September.
- Retail sales slipped slightly in June, raising some concerns that the economy could be slowing down. Slow economic growth is good for mortgage rates.
- Greece has finally agreed to terms for financial bailout in Europe. The recent turmoil supporting rates will likely no longer be a factor. (What happens in Greece effects our interest rates. Ask Erin more about that…)
- Existing home sales numbers rose to their highest level in nearly 8-1/2 years in June. The strong housing market recovery supports a Fed policy rate hike this year.
- Although higher prices should be prompting more homeowners to put their homes up for sale, tight supply of properties remains a constraint to the market.
- Freddie Mac released their 2015 U.S. Housing Market Insight & Outlook for July. Both housing starts and prices are expected to continue to rise.
- The NAHB reports builder confidence at the highest level since 2005. More builders are optimistic about current and future sales conditions for new homes.
- Foreclosure activity was at the lowest level in a decade during the first half of 2015. Foreclosure starts are below pre-crisis levels, signaling housing market strength.
- First-time buyers are gaining confidence and continue to join the housing market. Their participation has increased from 27% to 32% of the market year-over-year.
- Sales in Southern California are up 9.5% since January 2015
Thinking of Financing a Purchase or Refinancing?
To find out what the current interest rates are for your financing, contact Erin Dickinson of Investors Mortgage at 714-267-4030 or email her at [email protected]
Questions for Erin about Mortgages?
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