The first matter of business to discuss is our weekly 10 program Mortgage Rate Update. It has come to our attention that a formatting issue has made the rates hard to see for some folks. We have fixed the problem.
And in the spirit of the fix, we have posted a completely updated set of rates for Monday, July 28. (Sneak preview: rates have dropped across the board from our last calculation… especially notable were USDA, VA, FHA improvements).
About Last Week…
For housing news, existing home sales and new home sales dominated the discussion, and painted two different pictures about the real estate market.
Existing home sales rose by 2.6% in June to a 5.04 million yearly pace. The nation’s median sales price rose to $223,300. It was the 28th straight month of price gains.
Perhaps even more important, the inventory of for-sale homes expanded to 5.5 months. Inventory is now 6.5% higher than last year, and is at its “highest level in over a year,” according to the National Association of Realtor’s chief economist Lawrence Yun.
Low supply has been one reason that sales have dropped back a bit in 2014 (higher prices being another).
Other statistics from the report:
- 11% of sales were from “distressed” property (15% last year)
- 28% of buyers were first-time
- 32% of sales were cash
New home sales, meanwhile, dropped by 8.1% over the previous month and 11.5% over the previous year. The dip was unexpected, especially after weeks of solid housing news.
Builders listed lack of available land and a dearth of qualified labor as reasons for the dip. Also to blame: slowing household creation and millenials abstaining from home purchases.
Last week major stock indexes (Dow Jones Industrial Average and S&P 500) were largely unchanged. The 10-year Treasury Yield fell slightly. Mortgage rates dipped.
More positive news on the Mortgage Rate front.
At the beginning of the year, most people expected mortgage rates to rise. The 30-year fixed conforming rate was expected to sit in the mid-5.000% level by now.
Instead, over hallway through 2014, the 30-year fixed is down between the high-3.0% and low-4.0% level.
With rates still a bargain, now is an excellent time for buyers, and for any current mortgage holders who missed the refinance window in 2012 and 2013.
The combination of higher home prices and low supply is making life difficult for first-time buyers. Central Coast Lending offers many options for the first-time buyer that can make qualifying easier and more affordable. Give us a call at 805.543.LOAN to set up a free prequalification session.
On the topic of first-timer buyers, the FHA Hawk program will be arriving in the fall of 2014 and will drop Mortgage Insurance payments for new borrowers. The savings? Up to $20,000 over the life of the loan. Click here more information. The Mortgage Credit Certificate also offers new buyers thousands in savings. Click here for more information.
… has plenty of important pieces of data that could swing the market. Depending on the news, July Employment, U.S. GDP, and the Federal Open Market Committee meeting could all shift rates. We will cover any major movements on our website – www.CentralCoastLending.com.
Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email firstname.lastname@example.org to set up a free pre qualification. We are The Mortgage Experts: ask us anything!