Last week was jam-packed with economic news; here are some highlights with emphasis on housing and mortgage related news: Monday: Retail sales for April increased to -0.1 percent from the March reading of -0.5 percent and also surpassed Wall Street's downward forecast of -0.6 percent. Retail sales are important to economic recovery as sales of goods and services represent approximately 70 percent of the U.S. economy. Tuesday: The National Federation of Independent Business (NFIB) released its Small Business Optimism Index for April with encouraging results. April's index rose by 2.6 points to 92.1. A reading of 90.7 indicates economic recovery. This index is based on a survey of 1873 NFIB member businesses. Wednesday: The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for May matched investor expectations with a reading of 44. At three points above the March reading of 41, this report suggests that builders are slowly gaining confidence in national housing markets. Thursday: The U.S. Commerce Department reported that Housing Starts fell by 16.5 percent in April to a seasonally-adjusted annual level of 853,000 from 1.02 million housing starts in March. This reading fell short of investors' consensus of 965,000 housing starts, however, this decrease was caused by the volatile apartment construction sector. Friday: Consumer sentiment for May surpassed investor expectations of +0.3 percent and came in at +0.6 percent. As consumer sentiment improves, it's likely that more consumers will buy homes. Rising Interest Rates Show Strengthening Economy Mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose from 3.42 percent to 3.51 percent with borrowers paying 0.70 in discount points and all of their closing costs. 15-year fixed rate mortgages rose from 2.61 percent last week to 2.69 percent this week with borrowers paying 0.70 in discount points and all of their closing costs. This news is consistent with a strengthening economy, but is narrowing opportunities for home buyers seeking both affordable home prices and low mortgage rates. Federal Open Market Committee Minutes To Be Released This Week Week Of Mon, May 20 2013 - Fri, May 23 2013 | |||||
Time | Event | Period | Unit | Forecast | Prior |
| Mon, May 20 - Tue May 21 | |||||
| -- | No Significant Scheduled Data | -- | -- | -- | -- |
| Wed, May 22 | |||||
| 07:00 | Mortgage market index | w/e | -- | -- | 876.6 |
| 10:00 | Existing home sales | Apr | ml | 5.00 | 4.92 |
| 10:00 | Exist. home sales % chg | Apr | % | 1.5 | -0.6 |
| 14:00 | FOMC Minutes | -- | -- | -- | -- |
| Thu, May 23 | |||||
| 08:30 | Initial Jobless Claims | w/e | K | 346 | 360 |
| 08:58 | Markit Manufacturing PMI | Mar | % | 52.0 | 52.1 |
| 09:00 | Monthly Home Price mm | Mar | % | 0.9 | 0.7 |
| 10:00 | New home sales-units mm | Apr | ml | 0.425 | 0.417 |
| 13:00 | 10yr TIPS Auction | -- | -- | -- | -- |
| Fri, May 24 | |||||
| 08:30 | Durables Goods Orders | Apr | % | 1.6 | -6.9 |
| * mm: monthly | yy: annual | qq: quarterly | "w/e" in "period" column indicates a weekly report * Q1: First Quarter | Adv: Advance Release | Pre: Preliminary Release | Fin: Final Release * (n)SA: (non) Seasonally Adjusted * PMI: "Purchasing Managers Index" | |||||