Last week’s economic reporting included readings on Case-Shiller Home Price Indices, new home sales, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released. No readings were released on Thursday or Friday due to the Thanksgiving holiday.
Case-Shiller Reports Highest Pace Of Home Price Growth Since 2014
Case-Shiller reported higher home price growth in September with national home price growth of 7.00 percent on a seasonally adjusted annual basis. August’s national home price growth pace was 5.80 percent. Housing markets in many areas are seeing increased activity due to higher demand for homes.
While higher home prices appear counter-intuitive during the pandemic and related economic challenges, the coronavirus pandemic has created more demand for homes as buyers move from congested urban metro areas to less populated areas. Buyers continued seeking larger homes as working from home and remote learning increased.
Phoenix, Arizona, Seattle, Washington and, San Diego, California maintained the top three ratings for home price growth in the 20-City Home Price Index. New York, New York, and Dallas, Texas reported the lowest rates of home price growth due to large numbers of Covid-19 cases reported earlier this year.
In related news, the Commerce Department reported 999,000 sales of new homes on an annual basis in October. The year-over-year gain was 41.50 percent higher than one year ago.
Mortgage Rates, Jobless Claims Mixed
Freddie Mac reported no change in average rates for fixed-rate mortgages, which averaged 2.72 percent for 30-year fixed-rate mortgages and 2.28 percent for 15-year fixed-rate mortgages. and an increase of 0.31 basis points for 5/1 adjustable rate mortgages, which averaged 3.16 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.
Initial jobless claims rose last week with 778,000 first-time claims filed. Analysts expected 720,000 claims based on the prior week’s reading of 748,000 initial jobless claims filed. Ongoing claims fell to 6.07 million claims filed as compared to the prior week’s reading of 6.37 million continuing jobless claims filed.
The University of Michigan reported a lower reading for consumer sentiment in November with an index reading of 76.9. Analysts expected a reading of 76.8 and the prior month’s reading was 77.0. Rising numbers of Covid-19 cases will likely cause further declines in consumer sentiment.
What’s Ahead
This week’s scheduled economic reporting includes readings on pending home sales, construction spending, and labor-sector reports on public and private sector jobs and the national unemployment rate.
Before taking out a mortgage to buy a home, it’s time to take a realistic survey of your finances so that you can determine your price range and what size of home you can comfortably afford.
If you are thinking about purchasing your first home in the near future, then you need to be aware of the costs that you are going to take on. When you are looking at the cost of a home, it is very tempting to focus on the sticker price of the home. Even though the down payment is going to be the largest check you are going to write, this is not the only cost that you are going to pay.
When people are thinking about moving, they want to make sure they find the right neighborhood. At the same time, it is not always easy for many homeowners to decide where they are going to live. Particularly if they are not familiar with the local community, there are a few important points that everyone should keep in mind. By thinking about these factors ahead of time, potential homeowners are going to place themselves in a position to be successful when they purchase their next home. 
Last week’s economic reporting included readings on housing market conditions, sales of previously owned homes, and housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims were also released.
If you’re in the market for a new home and you’ve been researching mortgages, you’ve likely come across the terms “pre-qualification” and “pre-approval”. While these terms are self-explanatory in some circumstances, they are quite different in regards to mortgage financing.
For those who are thinking about buying a house in the near future, they are probably in the process of tabulating up all of their expenses. One of the common expenses is home insurance. Even though home insurance is certainly recommended, is it actually required? There are many situations where it is required. At the same time, even when it is not required, it is still a good idea. When it comes to homeowners’ insurance, there are a few important points to keep in mind. 
Builder confidence in housing market conditions reached a new record high in November according to the National Association of Home Builders. November’s index reading of 90 was five points higher than in October. Index readings over 50 indicate positive builder sentiment toward market conditions. Readings for the Housing Market Index fell below 50 in April and May as the COVID-19 pandemic grew.
This has been a difficult year for everyone. There are a lot of people who are worried that they might not be able to keep up with their mortgage payments. Small businesses have had to close their doors and numerous individuals have been laid off from work.
Last week’s economic reporting included readings on inflation and consumer sentiment along with weekly readings on mortgage rates and jobless claims. Federal Reserve Chair Jerome Powell and Federal Reserve Board members addressed economic expectations resulting from the COVID-19.