WASHINGTON >> U.S. mortgage rates rose this week for a third week in a row, lifted by investors’ expectations for faster economic growth, which has pushed up borrowing costs.
Mortgage giant Freddie Mac said Thursday that the rate on 30-year, fixed-rate mortgages rose to 4.15 percent this week from 4.04 percent. That is the highest since March. The rate on 15-year fixed-rate mortgages rose to 3.62 percent, also the third straight increase.
Signs of faster economic growth also have lifted concerns that inflation may quicken and the Federal Reserve will raise short-term interest rates more quickly to keep price increases in check. That has driven up the yield on the 10-year Treasury note. Mortgage rates track the yield on the 10-year.
The rate on five-year adjustable-rate mortgages climbed to 3.52 percent this week, after a flat reading of 3.46 percent last week.
New-home sales fell 9.3% in December
WASHINGTON >> Americans cut back their purchases of new homes in December as harsh winter weather dampened demand.
The Commerce Department said Thursday that new-home sales skidded 9.3 percent last month to a seasonally adjusted annual rate of 625,000. It was the biggest drop since August 2016. November sales were revised lower — to 689,000 from an originally reported 733,000, but were still the strongest since October 2007.
December sales had been expected to fall after strong November figures, but the drop was steeper than economists had forecast.
Ben Ayers, senior economist at Nationwide, said the winter weather may have reduced sales last month. He expects that home-buying will “rebound nicely in the early months of 2018.”
Sales dropped across the country last month, led by a 10 percent drop in the Midwest and a 9.8 percent drop in the South.
New-home sales are volatile from month to month, but 2017 was a strong year overall: 608,000 new homes were sold last year, the most since 2007 and up 8.3 percent from 2016. A healthy job market has given Americans more confidence. The unemployment rate is at a 17-year low 4.1 percent.
The median price of a new U.S. home hit a record $335,400 in December, up 2.6 percent from a year earlier.
ON THE MOVE
Hawaii Food & Wine Festival has promoted Aya Leslie to director of development and operations from development manager. She joined the program in 2012. Prior to that, Leslie worked various positions for 10 years at Roy’s Restaurants in Hawaii and California.
East Oahu Realty has announced that Alison Medhurst has joined it as a Realtor associate. Medhurst previously worked for Marco Polo Realty.
Sales & Marketing Executives Honolulu has announced that Eric K. Yeaman is its 2017 Salesperson of the Year. He is president and chief operating officer of First Hawaiian Bank. SME Honolulu will honor Yeaman at a luncheon at 11:45 a.m. March 13 at the Sheraton Waikiki Resort Hawaii Ballroom.
