Mortgage Market Update 07-28-14

The upward trend of home prices continued in May, rising .9% from April and up 5.9% from a year ago, reported Black Knight Financial Services. The analytics and data company also said that 20 of the largest 40 metros all reported month-over-month gains. Black Knight went on to say that Colorado and Texas home prices hit new highs in May. Of the 20 largest states, prices are still 32.4% lower than their April 2006 peak.

The National Association of REALTORS® (NAR) reported on Monday that June Pending Home Sales fell by 1.1% from May and down 7.3% from June 2013. Despite the declines, the index is still above 100, which is considered an average level of contract activity. The NAR said that the housing market is stabilizing, but there are ongoing challenges with supply shortages, flat wages and tight credit.

Gasoline prices across the country have been trending lower in the past month and have fallen 24 consecutive days due to abundant refinery production, despite the geo-political tensions in Gaza Strip and Ukraine. The AAA national average for a regular gallon of gasoline is $3.52, five cents lower than last week and 16 cents below one month ago. Here in the U.S., refinery production reached its highest level of the year, which is helping to push prices lower.