“It’s gonna be a bright sun-shiny day.” (Johnny Nash) The sun was shining on new home sales in May, as they reached their highest level since November.

New Home SalesSales of new homes rose 6.7 percent from April to an annual rate of 689,000, the Commerce Department reported. However, April’s sales figure was revised lower to 646,000 from the original reading of 662,000. From May 2017 to May 2018, sales surged 14.1 percent. There was a 5.2-month supply of new homes for sale on the market, just below the 6 months that is considered normal.

The final reading on Gross Domestic Product for the first quarter of 2018 came in at 2.0 percent, below the second reading of 2.2 percent. GDP is the monetary value of all finished goods and services produced within our borders in a specific time. It is considered the broadest measure of economic activity. GDP readings between 2.5 to 3.0 percent are considered healthy, so the final reading for the first quarter was a disappointment. However, many forecasters are expecting a stronger GDP reading for the second quarter.

The inflation-measuring Personal Consumption Expenditures (PCE) and Core PCE, which excludes volatile food and energy prices, both ticked up 0.2 percent from April to May, in line with expectations. However, on an annual basis Core PCE ticked up to 2.0 percent, after rising 1.8 percent annually in April. The bottom line for inflation is that it reduces the value of fixed investments like mortgage bonds. Home loan rates are tied to mortgage bonds, so rising inflation can also cause rates to move higher.

For now, home loan rates remain attractive historically.

Fireworks could continue Friday once the June Jobs Report is released.

  • Manufacturing news via the ISM Index will be released on Monday.
  • On Thursday, the ADP National Employment Report, weekly Initial Jobless Claims and the ISM Services Index will be delivered.
  • Also on Thursday, the minutes from the June FOMC meeting will be released.
  • On Friday, look for the closely-watched Jobs Report for June, which includes Non-Farm Payrolls, the Unemployment Rate and Hourly Earnings.

If you or someone you know is wondering about home loan products or rates, please reach out. I’d be happy to help.

Related Articles

There's no place like home, just ask Mackenzie Holowach. When the pandemic hit, Holowach was transferred to assist at a COVID testing site and later worked in a New Jersey ICU. Changing clothes before entering the home she shared with her sister became her norm and Holowach even spent time living…
Read More of the post Stories from the Frontline

Homebridge Launches Office of Diversity and Inclusion as Part of Commitment to Employees, The Housing Industry, And Customers Homebridge announced their newest commitments to diversity, inclusion and empowerment for borrowers and employees of the company. As of September 15th, 2020 – Homebridge has committed to the following initiatives as it…
Read More of the post Homebridge Launches Office of Diversity and Inclusion

Fall is here and as the leaves change colors you may be asking yourself, what would make my home the one I’ve always dreamed of? Maybe an inground pool, a backyard deck or even a sunroom? Lavish changes like these can certainly make a difference in how you feel about…
Read More of the post Top 3 Home Renovations and How to Achieve Them

Many homebuyers look for the “perfect” home rather than the right home. If you’re shopping for a new home to build equity and set down roots for you and your family, think about expanding your search to include the often-overlooked fixer-uppers. Combining your purchase loan with a renovation loan can…
Read More of the post Why & How to Buy & Reno a Fixer Upper

We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.