Weekly Economic Update 6.27.18
I hope you had a great weekend.
RATE MOVEMENT (from prior week) – NO CHANGE
After the prior week’s packed economic calendar, last week there was virtually no significant news except for some housing market data. It was an extremely quiet week, and mortgage rates ended almost unchanged.
IMPORTANT ECONOMIC FACTORS:
Home Sales - In May, sales of previously owned homes decreased slightly from April, and they were 3% lower than a year ago. The inventory of previously owned homes for sale rose 3% from April to a 4.1-month supply, but it was 6% lower than a year ago. Even with the increase, inventory levels remain very low by historical standards and are holding back sales. A 6.0-month supply is considered a healthy balance between buyers and sellers. The median home price was 5% higher than a year ago.
Housing Starts – In an encouraging sign, home builders may be helping to address the shortage of inventory. In May, housing starts jumped a stronger than expected 5% from April, to the highest level since July 2007. Both single-family and multi-family units rose by a comparable amount. Despite rising labor and lumber costs, builders appear to be eager to supply more homes to the markets.
This is another relatively light week for economic data, and I do not foresee any rate changes occurring. That being said, there is not data to support rates going much lower, they will likely stay in the current channel, and eventually slowly rise.
Please let me know if you have any questions in regards to this.
Thank you for your continued support, have a great week.
SVP, Regional Manager
THE CRAWFORD TEAM
V.I.P Mortgage, Inc.