In some programs we saw rates move to the lowest levels we’ve seen only a few times in the last six months. A big driver in this slightly favorable move with rates was the first quarter Gross Domestic Product (GDP) being revised substantially lower from -1% to a negative 2.9%. It was the fastest rate of decline since the first quarter of 2009. This bad news for the economy was good news for rates. We may have seen an even larger improvement in rates, but investors continue to point towards the brutal winter conditions that halted economic activity.
In brighter news we were provided strong reports in housing!
– May existing home sales increased 5% from April, the largest monthly gain since August 2011.
– May new home sales jumped 19% from April, the highest level since May 2008.
– Case-Shiller 20-city home price index reported home prices were 11% higher than just one year ago.
– Total inventory of existing homes rose 2% to a 5-6 months supply.
Trident Mortgage Rate Sheet 6-29-2014 (JFG) Jason F. Griesser, CMB
Sr. Mortgage Consultant
Ph: 215-440-2073 | Fx: 610-650-5611