Image: Reference

 Property prices rose for the 5th consecutive week in a week ending March 18th. Tracking of 3-base points increased from last week; The 30-year target has increased by four other points to 3.09%.

Compared to this period last year, prices for 30 years have dropped by 56 points.

The 30-year target has also dropped by 185 points from November 2018 with a final high of 4.94%.

Significantly, however, it was only the third week of a 3% merger from July last year.

Weekly Economic Data

It was the first part of a busy week on the U.S. economic calendar.

Prior to economic data, production figures from NY State, retail sales, and industrial production figures were more focused.

It was a mixed bag in front of the data.

In March, the NY Empire State Manufacturing Index rose from 12.1 to 17.4, beating forecasts.

It was the only positive figure, however, when all sales and industrial production were disappointing.

In February, basic sales decreased by 1.7%, while sales decreased by 3.0%.

Things could have been much better on the manufacturing side, with industrial production declining by 2.2% in February.

Elsewhere, economic data from China was impressive again earlier this week.

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Retail sales increased by 33.8%, while industrial production fell by 35.1%.

Finally, however, it was the FED that issued the 5th consecutive week’s increase in commodity prices.

While the FOMC economic projections point to inflation until 2023, inflation was particularly hawkish.

Freddie Mac Rates

The average weekly price of new Mortgages on March 18 was quoted by Freddie Mac as follows:

30-year fixed rates increased by 4 basis points to 3.09% per week. At this time last year, prices stood at 3.65%. The average price has increased from 0.6 points to 0.7 points.

The 15-year target has increased by a basic score of 2.40% per week. Prices dropped by 66 basic points from 3.06% last year. The average price has increased from 0.6 points to 0.7 points.

The 5-year target has also increased by 2.79%. Prices dropped by 32 points from 3.11% last year. The fee is fixed at 0.3 points.

According to Freddie Mac:

As expected, loan rates continued to rise by inches but still wandered about 3%, keeping interested buyers in the market.

Residential construction has declined for two consecutive months, however.

Given the very low cost of inventory and competition among potential home buyers, it is a challenging reality, especially for first-time buyers.

Mortgage Consumer Association Rates

For the week ending March 12, prices have been:

The 30-year interest rate used to estimate loan balances has increased from 3.26% to 3.28%. Decreased points from 0.43 to 0.41 (including start-up costs) by 80% of LTV loans.

The average 30-year FF-funded loan has increased from 3.20% to 3.25%. Points increased from 0.37 to 0.38 (including start-up costs) by 80% of LTV loans.

The average 30-year jumbo loan balance has not changed to 3.34%. Rates decreased from 0.50 to 0.40 (including start-up costs) by 80% of LTV loans.

The weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is the average loan application volume, fell by 2.2% in the week ending March 12. Last week, the index dropped by 1.3%.

The Reference Index has dropped by 4% since last week and by 39% over the same week last year. The index dropped by 5% last week.

During the week ending March 12, the share of loan disbursements decreased from 64.5% to 62.9%. Last week, the share dropped from 67.5% to 64.5%.

According to the MBA:

Loan activity was covered last week, and rising prices are reducing incentives for potential borrowers.

The planned level of 30 years has risen to the highest level since June 2020.

After reaching a peak recently last week in January, the inflation rate dropped by 26% to its lowest level since September 2020.

Prices rose by 36 points from the end of January, contributing to the collapse of monetary operations on all types of loans.

The stock market has helped put an end to inflation by resuming its operations, with a 5% increase in revenue since last year.

Labor market conditions and human conditions have provided support between the ongoing barriers to supply and affordability.

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For next week

It is the first half of the week in peace on the U.S. economic calendar. And. Key figures include strong underlying assets and initial figures for the private PMI sector in March.

Expect PMI services and consolidation commodity orders that are the main driving force.

On the monetary policy side, FED Chairman Powell is scheduled to address Monday and present Testimony on Tuesday and Wednesday. Expect any discussion of economic and monetary policy to be effective.

Powell will need to come out of last week’s text, however, to make a material impact.

Elsewhere, PMI of NGOs from the Eurozone will also provide a harvest in the middle of the week.