Daily News 8/27/2015

August 27, 2015

Thursday – August 27

Economic growth in the U.S. surged in the second quarter led by rising business investments and consumer spending. The Bureau of Economic Analysis reported that the second reading for second quarter Gross Domestic Product (GDP) rose by 3.7%, above the first reading of 2.3% and well above the anemic 0.6% recorded in the first quarter. GDP measures the value of all goods produced in the U.S. The consumer spending component of GDP rose by 3.1% compared to the 1.8% registered in the first quarter.

The National Association of REALTORS® (NAR) reported on Thursday that July Pending Home Sales were mostly unchanged, but did see a modest rise for the sixth time in seven months. Pending Home Sales rose by 0.5% versus the 1% expected and the index has increased year-over-year for 11 consecutive months. Lawrence Yun, NAR chief economist, says the housing market began the second half of 2015 on a positive note, with pending sales slightly rising in July.

Mortgage rates edged lower this week led by turmoil in the Chinese Stock markets. The 30-year conforming fixed-rate mortgage fell to 3.84% this week with 0.6 in points and fees. A year ago, the rate was 4.10%. The 3.84% is the lowest level since May and the fifth consecutive week with a rate below 4%, said a Freddie Mac official. Mortgage rates remain just above the historical lows and has given a boost to the housing market.