Existing home sales March 2017

Existing home sales for March 2017 came in higher than expected this morning. Analyst polled expected an annual rate of 5.60 million home sale units however the reading came in at 5.71 million home sale units (annual gauge).  That is also higher than the February 2017 reading that came in at 5.47 million home sale units.  Considering mortgage interest rates were elevated in the first few months of 2017; it’s interesting to see that sales for existing homes are increasing.  That being said; the real test is more towards summer to see if higher rates are reducing the number of home buyers.home sales

California home loan rates remain flat to start off the day as fixed rate mortgages and adjustable rates mortgages take a breather from the bond selling the last few days.  As previously mentioned in another post; the recent selling was low-moderate and somewhat expected due to the rally in mortgage bonds that started back in mid-March 2017.  Lenders are still being cautious with rates and that will continue for the foreseeable future due to the nature of industry (to be cautious).  Next week we have new home sales, consumer confidence, CaseSchiller, Chicago PMI and several bond auctions.  General outlook is positive heading into next week however this market is still a bit skittish so any negative news might push mortgage rates higher in the short term.   Long term though; the mortgage rate outlook remains solid as the market continues to show some medium to long term strength since mid-March 2017.