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MarketMinute | Home Sale Profits Are Up

May 17

5:56

AM

Category | Markets in a Minute

Consumer inflation data for April was slightly better than expected after coming in higher for 3 consecutive months, a good sign for rates.

Retail sales were unexpectedly flat in April, down from last month's 0.6% increase, an indicator that consumer spending may be losing momentum.

Jobless claims were slightly lower last week, but continuing claims — the number of people receiving benefits — rose to 1.79 million.

Housing News

Fewer homeowners are investing in renovations. After peaking in late 2022, the Leading Indicator of Remodeling Activity has steadily fallen.

Despite falling rates, purchase mortgage apps were down 2% for the week and 15% year over year.

Home sale profits have risen along with values. In 2023, nearly 8% of home sales yielded profits exceeding $500K, compared with about 3% in 2019.

MarketMinute | A better week for rates and apps

May 10

4:09

AM

Category | Markets in a Minute

The DJIA stretched its winning streak to 6 straight sessions this week, closing above 39K points for the first time in 5 weeks.

This year, consumers will borrow an estimated $334 billion through "buy now, pay later" loans, which often are not reported to credit agencies.

The May jobs report showed 175K new jobs in April, a 6-month low. Labor market declines open the door for the Fed to cut rates sooner in 2024.

Housing News

According to the New York Fed, renters put the probability of ever owning a home at a record low of 40.1%, a decrease from 44.4% a year ago.

NAR reports home prices trended up in 205 of 221 metro areas during the first quarter, with 30% experiencing double-digit gains.

Rates dipped last week, causing refinance apps to increase 5% for the week. Purchase apps rose 2% but were 17% lower than a year ago.

MarketMinute | Fed Rate Actions and Home Price Movement

May 3

5:58

AM

Category | Markets in a Minute

The Fed kept its policy rate unchanged at this week's FOMC meeting but kept alive hopes for at least one rate cut this year.

Job openings fell to a 3-year low in March, and fewer people quit their jobs. Declining labor market conditions could be good for rates.

Consumer confidence dropped to a 21-month low in April, falling for the 3rd straight month amid concerns about the cost of food and gas.

Housing News

The FHFA House Price Index climbed at a faster than expected 1.2% rate for the month in February, reversing a 0.1% decline in January.

Construction spending fell unexpectedly in March, though the acute housing shortage supports continuing activity.

The share of ARM applications rose to 7.8% of mortgage demand last week. Purchase apps fell 2% for the week and 14% from a year ago.

MarketMinute | Buyers make moves despite higher rates

Apr 26

4:02

AM

Category | Markets in a Minute

Orders for durable goods jumped 2.6% in March, mostly in transportation. Limited increases elsewhere signaled manufacturing weakness.

The economy grew last quarter at the slowest pace in 2 years. Consumer and government spending cooled amid a sharp uptick in inflation.

The first-quarter measure of underlying inflation advanced at a greater-than-expected 3.7% clip, the first quarterly acceleration in a year.

Housing News

Sales of newly built single-family homes, which make up about 10% of the market, jumped 8.8% in March, the most since December 2022.

Total mortgage applications dropped 2.7% last week. Purchase apps were down 1% on the week and 15% lower year over year.

Pending home sales posted a bigger-than-expected increase in March. Buyer demand held relatively steady in the face of higher mortgage rates.

MarketMinute | Mortgage apps rise despite higher rates

Apr 19

2:31

AM

Category | Markets in a Minute

Retail sales jumped 0.7% in March, much more than expected. It was the 2nd straight monthly increase and another sign of a resilient economy.

As progress stalled on lowering inflation, Fed officials signaled they are likely to keep rates higher for longer this year.

Last week’s jobless claims were flat at 212K, showing no signs of rising layoffs in the strong labor market.

Housing News

Builder sentiment was flat in April as mortgage rates hovered close to 7% and 1st quarter inflation data failed to show improvement.

Single family home starts fell 12.4% for the month in March but were still 17.4% higher year over year.

Mortgage applications rose for the 2nd straight week, even with higher rates. Purchase apps jumped 10% and refi apps were up 3% for the week.