Last Week in the News
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Construction of new homes in May fell to a seasonally adjusted annual rate of 1.47 million units, a 2.1% drop from April and a 24.2% decline from a year ago, the Commerce Department reported June 19. The decrease matched economists' expectations, and reflected weakness in the South and West, which offset construction gains made in the Northeast and Midwest.
Housing permits, considered a good barometer of future activity, rose 3% in May, but the increase followed a 7.1% plunge in April. Last month's stronger activity originated from a rebound in permits for apartment construction. Meanwhile, mortgage applications for single-family homes fell 1.8% and have been down four of the past five months.
The National Association of Home Builders reported on June 19 that its survey of builder sentiment sank two points to 28 in June, the lowest since it hit 27 in February of 1991. Readings below 50 mean more builders view market conditions as poor rather than favorable. All three major components of the index -- sales, sales expectations and buyer traffic -- posted declines.
Rates on 30-year mortgages, after rising for five straight weeks, edged down slightly for the week. Rates have been pressured by rising yields on the benchmark 10-year Treasury note.
For the week ended June 15, unemployment claims rose by 10,000, to 324,000, the highest level since mid-April. While the increase was unexpected, analysts said the labor market remained strong.
This week look for updates on existing home sales on June 25 and new home sales on June 26.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/
http://www.homecredible.com/
http://www.honestmortgageanswers.com/
Posted by Jason Lash at 10:54 AM
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