Feb 2, 2023 | Financial Reports
U.S. home prices continued to fall in November according to S&P Case-Shiller’s month-to-month national and 20-city home price indices, but home price growth rates remained in positive territory year-over-year. The national home price index posted a 7.70 percent year-over-year home price growth rate as of November 2022.
20-city home price index posts 5th consecutive month-to-month decrease in November
The S&P Case-Shiller 20-city home price index for November reported that the top three cities for home price growth were Miami, Florida with a year-over-year home price growth rate of 18.4 percent; Tampa, Florida followed with a year-over-year home price growth rate of 16.9 percent. Atlanta Georgia reported a 12.7 percent growth rate for year-over-year home prices.
Home prices tracked in the 20-city home price index rose at a 6.8 percent year-over-year- pace in November as compared to year-over-year home price growth of 8.6 percent posted in October 2022. 19 of 20 cities included in the S&P Case-Shiller 20-city home price index reported lower home prices in November; only Detroit Michigan reported a gain in month-to-month home price growth.
FHFA: prices drop for homes owned or financed by Fannie Mae and Freddie Mac
In related news, the Federal Housing Finance Agency, which oversees government-sponsored mortgage enterprises Fannie Mae and Freddie Mac, reported that home prices for homes financed or owned by Fannie Mae and Freddie Mac dropped by 0.10 percent month-to-month and rose by 8.2 percent year-over-year.
Nataliya Polkovnichenko, Ph.D. and Supervisory Economist in the FHFA’s Division of Research and Statistics, said: “ U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand for homes, low inventories of houses for sale have helped maintain relatively flat house prices.”
Changes in seasonally adjusted home price changes ranged across the nine Census Divisions from -1.1 percent in the Pacific Division to +0.5 percent in the West North Central Division. Year-over-year home price gains ranged from +2.4 percent in the Pacific Division to +12.0 percent in the South Atlantic Division.”
Data included in the FHFA House Price Index are gathered from reports on single-family home prices ranging from the 1970s to the present and include single-family home transactions in all 50 states and more than 400 U.S. cities.
Jan 30, 2023 | Financial Reports
Last week’s economic reporting included readings on new and pending home sales, inflation, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.
New home sales increase in December
The Commerce Department reported new home sales rose to a seasonally-adjusted annual pace of 616,000 sales in December as compared to the expected pace of 615,000 new homes sales and November’s revised reading of 602,000 annual sales. December was the third consecutive month that the pace of new home sales rose, but new home sales remained well below the 1.04 million sales peak reported in August 2020.
Pending home sales rose by 2.5 percent in December, which outpaced expectations of a one percent decrease in pending sales and November’s seasonally-adjusted annual decrease of -2.6 percent in pending home sales. New home sales are 26.6 percent lower than they were one year ago.
Month-to-month inflation slows in December
The Commerce Department reported that month-to-month inflation rose by 0.1 percent in December, which matched November’s month-to-month reading. Core inflation rose by 0.1 percent in December to 0.3 percent and matched analyst expectations. Core inflation readings exclude volatile food and fuel sectors that comprise major expenses for many U.S. households.
Year-over-year inflation rose by 5.0 percent in December as compared to November’s pace of 5.5 percent. Core inflation rose 4.4 percent in December, which matched analyst expectations, but fell short of November’s year-over-year reading of 4.7 percent for core inflation.
Mortgage rates, initial jobless claims fall
Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by two basis points to 6.13 percent. The average rate for 15-year fixed-rate mortgages fell by 11 basis points to 5.17 percent.
First-time jobless claims fell to 186,000 filings as compared to the expected reading of 205,000 initial jobless claims and the previous week’s reading of 192,000 new jobless claims filed. Continuing jobless claims rose to 1.68 million ongoing claims as compared to the previous week’s reading of 1.66 million continuing jobless claims filed.
Consumer sentiment strengthens in January
The University of Michigan’s Consumer Sentiment Index rose to an index reading of 64.9 in January, which surpassed the expected reading of 64.6 and December’s final index reading of 64.6. Readings over 50 indicate that a majority of consumers surveyed have a positive outlook on the economy. Falling gasoline prices contributed to an improved consumer outlook, but grocery prices remained high.
What’s ahead
This week’s scheduled economic reporting includes readings on U.S. home prices, The Federal Reserve’s Federal Open Market Committee meeting, and Fed Chair Jerome Powell’s scheduled press conference. Labor-sector reports on job growth and the national unemployment rate will also be released.
Dec 12, 2022 | Financial Reports
Last week’s scheduled economic reports included preliminary monthly readings on inflation and consumer sentiment along with weekly reporting on mortgage rates and jobless claims.
University of Michigan Reports Slower Inflationary Growth
The University of Michigan predicted lower inflationary growth as December’s year-over-year reading for inflation fell to 4.6 percent from November’s year-over-year reading of 4.9 percent. This was the lowest inflation reading since September 2021. Analysts credited lower gasoline prices for slowing rapid inflation rates seen in recent months.
Falling gas prices also contributed to higher consumer sentiment levels reported in December’s edition of the University of Michigan’s Consumer Sentiment Index. Consumer sentiment rose to an index reading of 59.1 in December as compared to November’s reading of 56.8 and analysts’ expected reading of 56.5.
Component readings for current consumer sentiment data included consumer sentiment regarding current economic conditions and consumer views about economic conditions within the next six months. December’s index reading for consumer views of current economic conditions rose to 60.2 from November’s index reading of 58.8. The index reading for consumer views of economic conditions within the next six months rose to 58.4 from November’s reading of 55.6.
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 16 basis points to 6.33 percent. The average rate for 15-year fixed-rate mortgages fell by nine basis points to 5.67 percent.
First-time jobless claims rose to 230,000 claims from the previous week’s reading of 225,000 initial claims filed. Ongoing jobless claims also increased last week with 1.67 million continuing claims filed as compared to the previous week’s reading of 1.61 million ongoing jobless claims filed.
What’s Ahead
This week’s scheduled economic events include reports on inflation, the post-meeting statement of the Fed’s Federal Open Market Committee, and Fed Chair Jerome Powell’s press conference after the FOMC statement.
Nov 14, 2022 | Financial Reports
Last week’s scheduled economic news included readings on monthly and year-over-year inflation and the University of Michigan’s preliminary reading on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.
Consumer Price Index: Inflation Shows Signs of Slowing
Government readings on October inflation showed signs of stabilizing and even slowing. The Consumer Price Index for October showed month-to-month inflationary growth of 0.40 percent as compared to the expected reading of 0.60 percent and September’s reading of 0.40 percent growth. Year-over-year inflation rose by 7.70 percent as compared to the expected reading of 7.90 percent and September’s reading of 8.20 percent.
Month-to-month core inflation, which excludes volatile food and fuel sectors, rose 0.30 percent in October as compared to expectations of 0.50 percent growth and September’s reading of 0.60 percent growth. Year-over-year core inflation rose 6.30 percent; analysts expected year-over-year core inflationary growth of 6.50 percent. September’s year-over-year reading for core inflation was 6.60 percent. The Federal Reserve considers year-over-year inflation of two percent as normal.
Mortgage Rates, Jobless Claims Rise
Freddie Mac reported higher mortgage rates last week as rates for 30-year fixed-rate mortgages averaged 7.08 percent and 13 basis points higher than for the previous week. Rates for 15-year fixed-rate mortgages rose nine basis points and averaged 6.38 percent. Rates for 5/1 adjustable rate mortgages averaged 6.06 percent and 11 basis points higher than for the previous week. Discount points averaged 0.90 percent for 30-year fixed-rate mortgages and 1.00 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.20 percent
Initial jobless claims rose last week with 225,000 new claims filed as compared to 220,000 new claims expected and 218,000 first-time jobless claims filed. in the previous week. 1.49 million continuing jobless claims were reported, which matched the previous week’s reading.
The University of Michigan released its preliminary consumer sentiment survey for November with an index reading of 54.7. Analysts expected a reading of 59.5 for November; October’s reading was 59.9. Index readings over 50 indicate that most survey participants view current economic conditions as positive.
What’s Ahead
This week’s scheduled economic reporting includes readings on housing markets, sales of previously-owned homes, government reports on housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims will also be released.
Nov 14, 2022 | Financial Reports
Last week’s scheduled economic news included readings on monthly and year-over-year inflation and the University of Michigan’s preliminary reading on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.
Consumer Price Index: Inflation Shows Signs of Slowing
Government readings on October inflation showed signs of stabilizing and even slowing. The Consumer Price Index for October showed month-to-month inflationary growth of 0.40 percent as compared to the expected reading of 0.60 percent and September’s reading of 0.40 percent growth. Year-over-year inflation rose by 7.70 percent as compared to the expected reading of 7.90 percent and September’s reading of 8.20 percent.
Month-to-month core inflation, which excludes volatile food and fuel sectors, rose 0.30 percent in October as compared to expectations of 0.50 percent growth and September’s reading of 0.60 percent growth. Year-over-year core inflation rose 6.30 percent; analysts expected year-over-year core inflationary growth of 6.50 percent. September’s year-over-year reading for core inflation was 6.60 percent. The Federal Reserve considers year-over-year inflation of two percent as normal.
Mortgage Rates, Jobless Claims Rise
Freddie Mac reported higher mortgage rates last week as rates for 30-year fixed-rate mortgages averaged 7.08 percent and 13 basis points higher than for the previous week. Rates for 15-year fixed-rate mortgages rose nine basis points and averaged 6.38 percent. Rates for 5/1 adjustable rate mortgages averaged 6.06 percent and 11 basis points higher than for the previous week. Discount points averaged 0.90 percent for 30-year fixed-rate mortgages and 1.00 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.20 percent
Initial jobless claims rose last week with 225,000 new claims filed as compared to 220,000 new claims expected and 218,000 first-time jobless claims filed. in the previous week. 1.49 million continuing jobless claims were reported, which matched the previous week’s reading.
The University of Michigan released its preliminary consumer sentiment survey for November with an index reading of 54.7. Analysts expected a reading of 59.5 for November; October’s reading was 59.9. Index readings over 50 indicate that most survey participants view current economic conditions as positive.
What’s Ahead
This week’s scheduled economic reporting includes readings on housing markets, sales of previously-owned homes, government reports on housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims will also be released.
