Market Movement – June 1, 2020

Market Movement
Mortgage rates have not moved significantly this week and are still historically low.  Home price appreciation has continued at a sustained pace.  Consumer confidence improved.  New home sales unexpectedly increased.  New purchase mortgage application submissions increased, and refinance application submissions declined.  The Federal Reserve released its Beige Book from its last semiannual monetary policy meeting.  The weekly jobless claims report continues to reflect widespread unemployment.  Gross Domestic Product (GDP) growth declined.  Personal incomes jumped but consumer spending declined.  The consumer sentiment index turned around.
MORTGAGE RATES CURRENTLY TRENDING
High
THIS WEEK’S POTENTIAL VOLATILITY
Neutral
Notable News

  • Mortgage rates hit all-time low. Read More >>
  • New home sales strongest with homes priced below $300,000. Watch Now >>
  • The housing market could already be recovering.  Read More >>
Market Recap

  • The S&P CoreLogic Case-Shiller home price index continued to post positive numbers in March, with a month-over-month increase of 0.5%.  Annually, the 20-city index is up 3.5%.  Phoenix, AZ led the index with an annual appreciation rate of 8.2%, followed by Seattle, WA with an annual appreciation rate of 6.9%.
  • The Federal Housing Finance Agency (FHFA) house price index appreciated 0.1% month-over-month and 5.9% year-over-year.  Like the Case-Shiller home price index, the data lags by one month, and has yet to show the full extent of the impact of the coronavirus pandemic on home prices.
  • The consumer confidence index improved slightly in May, up to a reading of 86.6.
  • New home sales unexpectedly increased in April, up 0.6% month-over-month.  Year-over-year, however, sales declined 6.2%.  Regionally, the data was mixed.  The Northeast experienced the largest month-over-month gains up 8.7%, followed by the Midwest and South, each up 2.4%.
  • For the week ending 5/22, new purchase application submissions jumped 9.0% and refinance application submissions declined just 0.2% for a composite increase of 2.7%.
  • The Federal Reserve released its Beige Book on Wednesday and predicted economic contraction would continue through June.  Many industries have been hit by stay-at-home orders and coronavirus-related closures especially travel, leisure, and hospitality.
  • In the first quarter of 2020, GDP growth slowed at a pace of 5%.  Economic contraction is likely to continue due to widespread job loss and a slowdown in consumer spending.
  • Pending home sales declined 21.8% month-over-month in April, and 33.8% year-over-year.  Each region experienced a decrease.
  • In April, personal incomes jumped 10.5% month-over-month bolstered by stimulus checks and expanded unemployment benefits.  Consumer spending dropped 13.6% month-over-month.
  • The consumer sentiment index turned around in May, rising to a level of 72.3.
Information Chart
Market Forecast

This week’s important economic reports include:

  • US construction spending
  • MBA applications
  • ADP employment
  • Jobless claims
  • Employment situation
Economic Calendar Outlook

WEEK OF JUNE 1, 2020

June 16th Thru 18th

About the Author

Gravitar for Rachel Barfield
Rachel Barfield

I love what I do as Marketing Coordinator for Keystone Signature Properties! It has been such fun to be a part of this team for 4 years now and it just keeps getting better! I have been married for 14 years and am a blessed mommy to two wonderful boys. They are my world!! Some things I love to do for fun are reading, watching movies, playing at the beach, time spent with my boys and visiting family and friends. Family and faith are very important to me and I love that here at Keystone Signature Properties that is a huge part of who we are!