Last week's scheduled economic news included reports on construction spending and several labor-related reports along with weekly reports on mortgage rates and new jobless claims. The details: Construction Spending Higher in December U.S. construction spending rose by 0.10 percent in December for a seasonally adjusted annual total of $1.12 trillion. The Commerce Department reported that construction firms spent 10.5 percent more than in 2014.Residential construction spending totaled $416.8 billion for 2015, which was 12.60 percent higher than in 2015. Higher construction spending can be a … [Read more...]
What’s Ahead For Mortgage Rates This Week – January 18, 2016
In addition to weekly reports on mortgage rates and new unemployment claims, last week's economic news included the Fed's Beige Book report, retail sales and consumer sentiment. January's Empire State Index showed an unexpected dip and Consumer Sentiment increased for January. Fed's Beige Book Shows Diverse Economic Trends According to the Federal Reserve's Beige Book report for January, the central bank's business contacts reported strength in housing, while agriculture, energy and manufacturing sectors were struggling. New York's Empire State Manufacturing Index for January supported this … [Read more...]
Federal Reserve Raises Short-Term Interest Rates
After prolonged speculation by economic analysts and news media, the Federal Open Market Committee of the Federal Reserve raised short-term interest rates for the first time in seven years. Committee members voted to raise the target federal funds rate to a range of 0.25 to 0.50 percent from a range of 0.00 to 0.25 percent to be effective December 17. The good news about the Fed's decision is that the Central Bank had enough confidence in improving economic conditions to warrant its decision. But how will the Fed's decision affect mortgage rates?December's FOMC statement cited improving job … [Read more...]
S&P Case-Shiller: September Home Prices Gain Across U.S.
Home prices increased across the S&P Case Shiller 20-City Home Price Index in September. According to the 20-City Home Price Index, Year-over year home price gains increased to 5.50 percent from August's reading of 5.10 percent. 17 cities posted higher year-over0year price gains in September as compared to August. Western cities led price gains with San Francisco, California reclaiming its lead with a year-over-year gain of 11.20 percent in September. Denver, Colorado followed with a year-over-year gain of 10.90 percent and Portland, Oregon achieved the third highest year-over-year home … [Read more...]
Case-Shiller Housing Market Index: Home Prices Rise in July
U.S. home prices rose by 0.10 percent in July according to the S&P Case-Shiller Housing Market Index. San Francisco, California edged past Denver Colorado with a year-over-year price increase of 10.40 percent as compared to Denver's reading of 10.30 percent. All year-over-readings for the 20-City Home Price Index posted gains, but Washington, D.C. showed the lowest year-over0-year growth rate at 1.70 percent. Chicago, Illinois and New York City followed closely with year-over-year readings of 1.80 percent and 1.90 percent respectively. Seasonally-Adjusted Home Prices Fall Although … [Read more...]