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What’s Ahead For Mortgage Rates This Week – July 22nd, 2019

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What’s Ahead For Mortgage Rates This Week – July 22nd, 2019Last week’s economic reporting included readings from the National Association of Home Builders Housing Market Index, Commerce Department reports on housing starts and building permits issued.

The University of Michigan consumer sentiment index was also released. Weekly readings on mortgage rates and new jobless claims were also reported.

NAHB: Builder Confidence Rises as Housing Starts Slip

Home builder confidence in current market conditions rose one point to an index reading of 65 in June. Any reading over 50 means that most builders view housing markets conditions as positive, but July’s reading was lower year-over-year.

Builders have long cited a shortage of buildable lots and labor, but also face new obstacles including strict local zoning laws and overall regulation. High demand for affordable homes coupled with short supplies of homes in this market range provided challenges to home builders, communities and would-be home buyers.

Housing starts fell in June to 1.125 million on a seasonally-adjusted annual basis. Analysts predicted 1.244 million starts based on May’s reading of 1.265 million starts. The housing market index used to foreshadow the number of housing starts, but the two readings are no longer as closely connected.

The Commerce Department reported 1.220 million building permits issued in June as compared to 1.299 million permits issued in May.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week after three weeks of minor movement. Rates for 30-year fixed rate mortgages averaged six basis points higher at 3.81 percent. The average rate for 15-year fixed rate mortgages rose one basis point to 3.23 percent.

5/1 adjustable rate mortgage rates averaged two basis points higher at 3.48 percent. Discount points averaged 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for 15-year fixed rate mortgages. Discount points for 5/1 adjustable averaged 0.40 percent.

New jobless claims rose to 216,000 new claims filed as compared to 208,000 new claims filed the prior week. Analysts predicted 220,000 first-time claims would be filed. The University of Michigan’s Consumer Sentiment Index rose in July to 98.40 percent as compared to June’s reading of 98.20. Analysts expected a reading of 99.00.

What‘s Ahead

This week’s scheduled economic news includes readings on sales of new and previously-owned homes along with weekly reports on mortgage rates and new jobless claims.

5 Important Benefits Of Downsizing Your Home

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5 Important Benefits Of Downsizing Your HomeAfter the children are all grown and moved out, the family home often feels excessively large and empty. If you’re in this stage of life, you may be wondering if you should downsize like so many others, or stay put. Downsizing may be the best option, depending on your lifestyle.

Here are five benefits of downsizing for you to consider.

1. Less Clutter

When you move into a smaller home, you’ll have the opportunity to get rid of many possessions that you no longer need. Whether it’s sporting goods or knick knacks, you’ll be able to either sell the items, give them away to kids and grandkids or donate them to a charitable organization. Your new home won’t have as much space, so this decluttering process is almost mandatory.

2. Lower Utility Bills

A smaller home means lower energy usage and lower utility bills. It’s likely that you’ll have fewer lights on the rooms, less square footage to heat and cool. You may also incur less water usage, since you may have fewer bathrooms and less lawn to irrigate. So, not only will you likely have a lower mortgage payment when you downsize, it will probably also take less money to run the home.

3. More Free Time

A smaller home means that it will likely take less time to maintain, too. There’s less to clean inside and a smaller house to maintain on the exterior of the home. This equates to much more time for you to do the things that you want to do instead of the things that you have to do.

4. Easier To Get Around

Downsizing usually makes it easier to get around the home. Many people who downsize opt for a single-floor home rather than a two-story home, so they can avoid having stairs in the home. Living on one floor is often easier as people age and climbing stairs becomes more cumbersome.

5. More Sustainable Living

A smaller home means a smaller carbon footprint. For people who are earth-conscious, a smaller home affords the chance to play their part in helping by living a more environmentally sustainable life.

Remember, downsizing doesn’t mean living with less. For many people who have already downsized, the process has infused their life with more opportunities to live a fuller existence by getting rid of space and possessions they didn’t really need anymore.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.

 

NAHB: Housing Market Index Rises 1 Point in July

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NAHB Housing Market Index Rises 1 Point in JulyHome Builder sentiment rose one point in July according to the National Association of Home Builders Housing Market Index. 2019 builder confidence in housing market condition continued to fall short of 2018 levels. July’s Housing Market Index reading of 65 was one point higher than June’s reading.

Component readings also rose one point each. Builder confidence in current housing market conditions rose to 72; the reading for builder confidence in market conditions for the next six months rose to 71. Builder confidence in buyer traffic in new housing developments rose to an index reading of 48; buyer traffic readings seldom exceed the neutral reading of reading of 50.

2019 Builder Confidence Is Lagging Behind 2018 Readings

Year to date, builder confidence index readings averaged 63 as compared to a reading of 67 in 2018 and 68 in 2017. Ongoing headwinds affecting builders were familiar concerns over materials prices and shortages of buildable lots and labor. Analysts said that builders remain leery of building to many homes after having large inventories of unsold homes after the Great Recession.

Builders also noted that increasing regulation and local building codes are impacting some areas. Builders are under pressure to produce affordable homes, but are log-jammed by “not in my backyard” zoning restrictions when they apply to build mixed developments of single and multi-family homes.

There may be good news on the horizon. Oregon passed state legislation banning exclusively single-family zoning. Depending on population, local jurisdictions will be allowed to build duplexes and larger multi-family units. If other states and communities follow Oregon’s lead, builders may find new options for building multiple units on lots formerly zoned for single family homes. Building affordable homes would help to ease housing shortages and ease demand for homes.

If you are in the market for a new home or interested in listing your current property, be sure to contact your trusted home mortgage and real estate professionals.

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