For-Sale Inventories at lowest level in 10 years, Mortgage rates lowest since November 2016, Gas prices continue to increase
April 19, 2017
Freddie Mac released its April outlook this week revealing that for-sale inventories of homes, especially starter homes, are currently at their lowest level in over 10 years. If inventories continue to decrease, home sales will most likely decline from the 2016 levels. Freddie went on to say that low unemployment and increasing inflation are still ongoing trends. As far as rates, Freddie predicts that the 30-year fixed conforming rate will top out at 4.5% later this year.
The Mortgage Bankers Association (MBA) reported this morning that despite mortgage rates at their lowest level since November 2016, the MBA’s Market Composite Index, a measure of total application volume, fell 1.8% in the latest week. The MBA’s purchase index fell 3.4%, due in part to the Passover and Easter holidays last week. The refinance index was essentially unchanged. The MBA also reported that the 30-year fixed conforming mortgage rate fell to 4.22% from 4.28%, while 30-year jumbo rates declined 9bp to 4.15%.
As more drivers take to the roads this spring and early summer months, the price of gas continues to increase across the country. In addition, refineries switch to a more expensive summer blend of gasoline. The national average price for a regular gallon of gasoline is at $2.40, up from $2.29 a month ago and $2.11 from a year ago. The national average is at its highest price this year and has now increased for 20 consecutive days. The highest recorded price was $4.11 hit back on July 17, 2008.