Last week’s economic reports included readings on sales of new and pre-owned homes and weekly reports on mortgage rates and first-time jobless claims.

Realtors® Report Sales of Pre-Owned Homes Fall in June

Sales of previously-owned homes fell last month according to real estate pros. 5.27 million homes would be sold in 2019 if the current pace of sales was unchanged for all of 2019. Analysts expected a reading of 5.33 million sales based on May’s reading of 5.38 million sales. Analysts said that sales of pre-owned homes fell despite lower mortgage rates and the seasonal peak home-buying season.

Sales of pre-owned homes rose 1.60 percent in the Northeast and were 1.60 percent higher in the Midwest. Sales fell 3.40 percent in the South and were 3.50 percent lower in the West. Factors contributing to lagging home sales included low inventories of available homes and steadily rising home prices.

Home prices have risen every month for more than seven years. Fewer homes for sale and higher home prices limit buyers’ choices and their ability to qualify for financing needed to buy higher-priced homes.

New Home Sales Rise in June after Two-Month Lull

The sales pace for new single-family homes rose to a seasonally-adjusted annual rate of 646,000 sales as compared to an expected sales pace of 657,000 for new homes. May’s reading was downwardly revised from a sales pace of 626,000 sales to 604,000 sales. New homes sold fastest in the South and West and were slower in the Northeast and Midwest regions according to the Commerce Department.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported average mortgage rates approaching three year lows last week. Rates for 30-year fixed rate mortgages averaged 3.75 percent and were six basis points lower. The average rate for 15-year fixed rate mortgages dropped five basis points to 3.18 percent; rates for 5/1 adjustable rate mortgages averaged 3.47 percent and were one basis point lower.

First-time jobless claims fell last week to 206,000 new claims filed as compared to the expected reading of 218,000 new claims filed and the prior week’s reading of 216,000 first-time unemployment claims filed.

What‘s Ahead

This week’s economic reports include readings on housing markets, pending home sales  and the post meeting statement of the Fed’s Federal Open Market Committee.

Fed Chair Jerome Powell is scheduled to give a press conference and the Labor Department will release monthly updates for public and private-sector jobs created and the national unemployment rate. Weekly reports on average mortgage rates and new jobless claims will also be released.

Last week’s economic releases included reports on inflation, core inflation and minutes from the Federal Open Market Committee Meeting held June 18 and 19. Weekly readings on mortgage rates and first-time jobless claims were also released.

Inflation Rate Rises, but Grows at Lowest Pace in Four Months

June’s Consumer Price Index reported the lowest rate of inflation in four months with a year-over-year rate of 1.60 percent growth as compared to May’s year-over-year inflation rate of 1.80 percent. Fuel prices were lower, which helped balance rising costs of rent, clothing and autos. Analysts said that falling inflation rates would be a primary reason why the Fed is likely to cut its key interest rate range later this month.

Core inflation, which excludes volatile food and energy sectors, rose 0.30 percent in June and surpassed expectations of 0.20 percent growth and May’s 0.10 percent growth rate.

Federal Reserve policymakers base their decisions  on the Fed’s dual mandate of maintaining maximum employment and economic growth, which is benchmarked at 2.00 percent annual inflation. FOMC members repeatedly state their commitment to reviewing domestic and global economic news and willingness to adjust Fed policy according to changing economic conditions and current events.

Mortgage Rates, New Jobless Claims

Freddie Mac  reported little change in average mortgage rates last week; Rates for 30-year fixed rate mortgages were unchanged at 3.75 percent; rates for 15-year fixed rate mortgages rose four basis points on average to 3.22 percent. The average rate for 5/1 adjustable mortgages rose one basis point to 3.40 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell by 13,000 claims to 209,000 claims filed and was lower than the expected reading of 221,000 new claims filed.  The July 4 holiday likely impacted the number of initial claims filed.

What‘s Next

This week’s scheduled economic news includes the National Association of Home Builders Housing Market Index, Commerce Department readings on housing starts and building permits issued and a report on consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.