Market Movement – May 25, 2020

Market Movement
Mortgage rates trended lower this week and continue to hover historic lows.  Home builder sentiment rebounded after a record drop the previous month.  Housing starts and building permits each declined.  New purchase mortgage application submissions increased but refinance mortgage application submissions declined.  The Federal Open Market Committee released the minutes from its previous meeting.  Jobless claims continue to reflect widespread layoffs and furloughs.  Existing home sales declined, as expected.
MORTGAGE RATES CURRENTLY TRENDING
High
THIS WEEK’S POTENTIAL VOLATILITY
Neutral
Notable News

  • How shelter-at-home improvement projects have impacted Lowe’s, Home Depot. Read More >>
  • Buyers can expect to see bidding wars as real estate activity picks up. Watch Now >>
  • Mortgage refinances climb to 17-year high.  Read More >>
Market Recap

  • The National Association of Home Builders’ (NAHB) housing market sentiment index turned around in May, after April’s significant drop.  Current sales conditions increased to 42, sales expectations for the next six months climbed to 46, and buyer foot traffic ticked up to 21.
  • Housing starts and building permits each declined in April, reflecting widespread shutdowns and closures.  Housing starts dropped 30% month-over-month to a seasonally adjusted annual rate of 891,000, the slowest pace in 5 years.  Building permits also fell, down 20.8% to a seasonally adjusted annual rate of 1.07 million.
  • For the week ending 5/15, new purchase mortgage application submissions increased 6.0% and refinance application submissions decreased 6.0% for a composite decrease of 2.6%.  The data indicates home buyers are returning to the market after stalling in April.
  • The minutes from the April FOMC meeting were released on Wednesday.  The Fed did not move interest rates during this meeting, after two emergency rate cuts in March.  In the minutes, the Fed noted it would continue to evaluate economic conditions specifically unemployment and inflation before making any further interest rate decisions.
  • For the week ending 5/16, initial jobless claims increased by 4.4 million, suggesting layoffs are starting to taper off.  Continuing claims increased to a level of 22.9 million.
  • Existing home sales fell 17.8% month-over-month in April to a seasonally adjusted annual pace of 4.33 million.
Information Chart
Market Forecast

This week’s important economic reports include:

  • Case-Shiller home price index
  • FHFA house price index
  • Consumer confidence index
  • New home sales
  • MBA applications
  • Jobless claims
  • Gross domestic product
  • Pending home sales index
  • Personal income, consumer spending, core inflation
  • Consumer sentiment index
Economic Calendar Outlook

WEEK OF MAY 25, 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!