Last week’s economic reporting included readings on new home sales and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published. No economic data was published Thursday or Friday due to the Thanksgiving holiday.
New Home Sales Surpass Expectations in October
The Commerce Department reported higher-than-expected sales of new homes during October. New homes sold at a seasonally-adjusted annual pace of 632,000 homes sold. Analysts expected new homes to sell at an annual pace of 570,000 sales as compared to the revised annual pace of 588,000 new home sales in September. The supply of available new homes rose by 1.50 percent between September and October and approached a nine-month supply of new homes for sale. Rising mortgage rates affected affordability for first-time and moderate-income home buyers, but average mortgage rates fell last week.
Mortgage Rates Fall, Jobless Claims Rise
Freddie Mac reported lower average mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by three basis points to 6.58 percent and the average rate for 15-year fixed-rate mortgages fell by eight basis points to 5.90 percent. Homebuilders reported rising costs and slowing home sales; some builders added or increased buyer incentives including mortgage rate buydowns and paying buyers’ closing costs.
Last week’s first-time jobless claims were higher than expected with 240,000 new claims filed as compared to the expected reading of 225,000 initial claims filed and the previous week’s reading of 223,000 new jobless claims filed.
Consumer sentiment fell to an index reading of 56.8 in November according to the University of Michigan’s consumer sentiment survey. November’s reading reflected consumer concerns about inflation and a potential recession and was markedly lower than October’s index reading of 59.9 and the October 2021 reading of 73.6. Consumer sentiment about economic conditions in the next six months was also lower at an index reading of 55.6. Readings over 50 indicate that most consumers have a positive view of economic conditions.
What’s Ahead
This week’s scheduled economic news includes readings on home prices, pending home sales, and inflation. Weekly readings on mortgage rates and jobless claims will also be released.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.