The news in real estate has been mainly positive lately. Let’s look at some of the news from the week of 6-10-2013 and what it means…
Construction Spending Up
Last Monday, the Department of Commerce reported that construction spending increased by 0.40% in April 2013. This is below the expectations of 1.0% but this is above the dismal March 2013 level of -0.80%. Increased construction spending is a good sign for the economy. Healthy unemployment levels are one of the requirements for a healthy housing market.
CoreLogic Says House Prices Increase
Last Tuesday, CoreLogic released their report on US Home Prices and it was yet another positive sign. They said the average US home price for April 2013 had increased by 12.1% compared to the April 2012 level. We have not seen home prices increase like this since way back in 2006.
The average US home price for April 2013 increased 3.2% from the March 2013 level. For more information about home prices in Upstate South Carolina, check out the Monthly Market Reports or come back on Sundays when I post the Weekly Snapshots for Anderson County, Oconee County and Pickens County.
Good News About the Unemployment Numbers
On Wednesday, ADP released its private-sector Payrolls Report for May. The good news from ADP was that 135,000 new private sector jobs were added in May 2013. This is an improvement from their April 2013 report.
We really could say TGIF last week because the Jobs Report from the Bureau of Labor Statistics also had some positive news. They reported that Non-Farm Payrolls increased. There was also some bad news though because the US Unemployment Rate increased to 7.6% from 7.5%. The Department of Labor said this increase is because more people joined or returned to the labor market. Which is the government’s way of saying that more people are looking for a job.
Everybody is Watching the Federal Reserve
The BIG BOY of economic reports came out last Wednesday when the Federal Reserve Beige Book Report was released. Not any really bad news. They said there was modest to moderate economic growth in 11 of the 12 Federal Reserve Districts. The most important thing we have to keep an eye on is next week’s Federal Open Market Committee (FOMC) meeting to see if there are any changes to the Fed’s current policy of buying bonds and mortgage backed securities (MBS).
The super low mortgage rates have been due to the Fed buying MBS. Mortgage rates started increasing after investors heard hints that the Fed might stop or slow down their QE program.
Speaking of Mortgage Rates
Like I said mortgage rates increased again. Freddie Mac reported that the average rate for a 30-year fixed-rate mortgage increased to 3.91%. Freddie also said that the average rate for a 15-year fixed rate mortgage rose increased to 3.03%. The Mortgage Bankers Association also reported ALL of the rates they track as increasing last week.
We have been swamped by reports of increasing home prices and rising mortgage rates. The key thing to remember that these reports are usually about average rates or home prices for the entire US. What is possible for you when it comes to mortgage rates means talking to a lender. It should go without saying you have already found the reliable source for Anderson South real estate market info.