MORTGAGE NEWS Last Week In Review April 29 2014

MORTGAGE NEWS Last Week In Review April 29 2014

"Reality is the leading cause of stress amongst those in touch with it." Lily Tomlin. The reality of the 2014 housing market is quite different than last year's, according to recent housing reports. 

New Home Sales for March plunged by 14.5 percent from February to an annual rate of 384,000 units. This was far below the 455,000 expected and the lowest level since July. New Home Sales in March were down 13.3 percent from the same period last year. Existing Home Sales for March didn't fare much better, as they declined by 0.2 percent from February to an annual rate of 4.59 million, just below expectations. This was the slowest pace since July 2012. 

In other housing news to note, the Federal 
Housing Finance Agency (FHFA) reported that its February Home Price Index (HPI) rose by 6.9 percent from the same period last year. This was the weakest reading in 13 months. 

What does this mean for home loan rates? Typically good news helps 
Stocks improve at the expense of Bonds, including Mortgage Bonds (the type of Bonds on which home loan rates are based). However, Bonds and home loan rates were able to benefit last week from the increased tensions between Russia and the Ukraine. This caused investors to move their money into the safe haven of Bonds, helping Mortgage Bonds and home loan rates improve. 

Whether these improvements continue could be contingent on several potentially market-moving items in the coming week, including the Jobs 
Report for April and the Fed's next meeting of the Federal Open Market Committee. Remember that the Fed is now purchasing $30 billion in Treasuries and $25 billion in Mortgage Bonds to help stimulate the economy and housing market. This is down from the original $85 billion per month that the Fed had been purchasing. It will be important to see if the Fed announces additional tapering of these purchases at its upcoming meeting. 

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Phone: 803-609-7641
Dated: April 29th 2014
Views: 969
About Braden: Let me start off by saying how proud I am to be a part of the SC Exit Realty family. After being ...

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