Last week’s housing related reports included the FHFA Home Price Index, the National Association of Realtors® Existing Home Sales report and The Commerce Department’s report on new home sales. Results were mixed, but suggest that housing markets are strengthening.
FHFA Home Prices Up in February, Existing Home Sales Highest in 18 Months
The Federal Housing Finance Agency reported that home prices associated with mortgages owned or backed by Fannie Mae and Freddie Mac rose from a 5.10 percent increase in January to a seasonally adjusted annual rate of 5.40 percent in February.
The National Association of Realtors® reported that sales of previously owned homes rose to 5.19 million in March as compared to expectations of 5.08 million sales and February’s reading of 4.89 million sales of pre-owned homes.
March sales represented a 6.10 percent gain over February sales; this was the highest volume of existing home sales in 18 months. Lawrence Yun, chief economist for NAR, said that if strong sales of pre-owned homes continue, 2015 could be the best year for existing home sales in nearly a decade.
New Home Sales Lag in March
The Department of Commerce reported that new home sales fell from February’s reading of 543,000 new homes sold to 481,000 new homes sold in March. Analysts expected a March reading of 503,000 new homes sold. This was the slowest pace for new home sales since November, but year-over-year, sales of new homes were 19.40 percent higher year-over-year. The national median home price fell by 1.70 percent to $277,400 year-over-year.
Sales of new homes decreased by 33 percent in the Northeast and fell by 16 percent in the South. New home sales fell by three percent in the West and rose by six percent in the Midwest. At the current sales pace, there is a 5.3 month supply of new homes for sale as compared to a 4.6 month supply in February. Analysts said that stagnant wage growth contributed to fewer home sales.
Mortgage Rates Lower, Weekly Jobless Claims
According to Freddie Mac’s weekly survey of mortgage lenders, average mortgage rates fell across the board last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 3.67 percent. The rate for a 15-year fixed rate mortgage also dropped two basis points to an average of 2.92 percent; the average rate for a 5/1 adjustable rate mortgage was four basis points lower at 2.84 percent. Discount points for a 30 year mortgage fell to 0.60 percent; points for a 15-year mortgage were higher at 0.60 percent and average discount points for a 5/1 adjustable rate mortgage fell from 0.50 to 0.40 percent.
Weekly jobless claims came in at 295,000 new claims filed; analysts expected a reading of 288,000 new claims and the prior week’s reading was 294,000 new claims filed. Spring break holidays were blamed for higher jobless claims and March job growth hit its lowest in more than a year. Analysts caution against reading too much into weekly fluctuations and prefer to use the four-week rolling average to identify trends in unemployment claims.
What’s Ahead
This week’s housing related economic reports include Case-Shiller 10 and 20 City Housing Market Index reports, the customary post-meeting statement from the Fed’s Federal Open Market Committee (FOMC) and pending home sales data.
When you are preparing to list your home for sale, you may take various steps to stage the interior so that it is appealing to a potential buyer. In addition to various steps you may take with staging the interior, you want to pay attention to your yard as well. During the spring months, many yards look fresh and vibrant, but they also need some extra care in order to boost curb appeal and make a great first impression on buyers.
When you buy a home, you may have dreams of settling into a beautiful new space that meets your needs and that your family can feel comfortable in. While many will enjoy this vision of domestic tranquility after taking ownership of their dream home, others have had their dream turn into a veritable nightmare due to some simple mistakes or oversights on their part. By understanding these mistakes, you can avoid making them yourself.
Real estate investing comes with many benefits that you may be eager to start taking advantage of. For example, the right rental property can provide you with monthly cash flow coupled with equity appreciation, tax deductions and more, and these can have incredible effects on your overall financial situation. As a first time real estate investor, you may be excited to start searching for a property to invest in, but you may consider following a few helpful tips to make your search more successful.
Depending on where you live, selling your house in the spring could take a few weeks to a few months. Although people are in the market to buy a home all throughout the year, spring time appeals to buyers who may be planning to use an income tax refund to help with the down-payment or closing costs. If you want to sell fast make sure you pay attention to the details like curb appeal, freshening the interior, and pricing your home right.
Last week’s economic reports included the NAHB Wells Fargo Housing Market Index, Housing Starts, and Freddie Mac’s weekly survey of mortgage rates. Other news included the weekly jobless claims report and consumer sentiment for April.