Apple Shares Surge, Pending Home Sales, Mortgage Rates Edge Higher

July 27, 2016

Wednesday – July 27

Shares of Apple are surging today after the maker of the popular iPhone reported better-than-expected quarterly earnings after the Stock markets closed on Tuesday. The company sold 40.4 million iPhones during the quarter, above the 40 billion expected, though down from the 47.5 million from the year-ago comparable quarter. Apple beat on earnings per share of $1.42 versus the expectations of $1.39. The company also guided next quarterly earnings higher.

In the housing market, Pending Home Sales edged higher in June, but below estimates due in part to the low supply of homes for sale and affordability constraints. The National Association of REALTORS® reported that Pending Home Sales rose 0.2%, below the 1.1% expected. The small gains come despite mortgage rates being near all-time lows. Pending Home Sales are up 1% from June 2015. Housing inventory is now 6% lower than last year this time, while home prices are rising faster than wage and income growth.

Mortgage rates edged higher in the latest week, though still remain just above all-time lows, reports the Mortgage Bankers Association (MBA). The MBA also said that mortgage application volume decreased as its Market Composite Index, a measure of total mortgage application volume, fell 15% in the latest week as the summer doldrums took hold. The refinance index fell 15%, while the purchase index decreased 3%. The MBA also reported that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.69% from 3.65 percent, with points unchanged at 0.36.