Walden Mortgage Weekly Newsletter: The Housing Market Update
Rental Vacancy Rates Fall to Lowest in Decade:
The share of empty homes for rent fell to its lowest level in a decade during the second quarter. This is very important for the housing market, as this type of trend is always a pre-curser for stronger housing demand.
The residential rental vacancy rate declined to 8.6 percent from 8.8 percent in the January-March period, the Commerce Department said on Friday. The second-quarter reading was the lowest since 2002.
In a positive sign for the housing market, the homeownership rate edged up to 65.5 percent in the second quarter from 65.4 percent in the prior period, the Commerce Department said.
The homeowner vacancy rate dropped to 2.1 percent, the lowest since the first quarter of 2006, from 2.2 percent in the first quarter.
The homeownership rate peaked at 69.4 percent in 2004 at the height of a housing market boom fueled by cheap credit.
What Happened to Rates Last Week?
Mortgage backed securities (MBS) lost -38 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.
We will be watching these reports closely for you and let you know if there are any big surprises: