14
Sep
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – September 14, 2020

What's Ahead For Mortgage Rates This Week - September 14, 2020Last week’s economic news included readings on inflation, job openings, and weekly reports on jobless claims and mortgage rates.

Inflation Rate Slows in August

After posting 0.60 percent growth for each month in June and July, the Consumer Price Index rose by 0.40 percent in August. These growth rates offset declines in inflation during the first three months of the COVID-19  pandemic. Used vehicle prices increased after deep discounts offered when the pandemic started; analysts said that rising prices for used vehicles offset losses in previous months and produced low inflation for August.

Core inflation, which excludes volatile food and energy sectors, mirrored results for the Consumer Price Index with 0.40 percent growth in August as compared to 0.60 percent growth in consumer prices in July. Prices for items in high demand in the first months of the pandemic have stabilized as panic buying of paper goods and meat has subsided. 

July Job Openings Increase; Labor Market Remains Uncertain

617,000 jobs were added in July as compared to 600,000 jobs added in June. Hiring fell in July to a pace of 5.80 million hires as compared to nearly seven million hires in June. Job openings rose by 617,000 job openings to 6.60 million openings in July. Analysts said that seven million jobs were added per month before the pandemic.

Mortgage Rates Fall to Record Low, Jobless Claims Hold Steady

Freddie Mac reported record low fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.86 percent and were seven basis points lower. Rates for 15-year fixed-rate mortgages averaged 2.37 percent and were five basis points lower. Rates for 5/1 adjustable rate mortgages rose by 11 basis points to an average of 3.11 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages, and 0.20 percent for 5/1 adjustable rate mortgages.

Initial jobless claims were unchanged from last week’s reading of 884,000 new claims filed. Continuing jobless claims rose to 13.39 million from the prior week’s reading of 13.29 million ongoing claims filed. 

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market conditions, reports on housing starts, and building permits issued The University of Michigan will issue its Consumer Sentiment Index. Weekly readings on mortgage rates and jobless claims will also be released.

 

08
Sep
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – September 8, 2020

What's Ahead For Mortgage Rates This Week - September 8, 2020Last week’s scheduled economic news included readings on construction spending and labor sector reports on public and private sector jobs. The national unemployment rate was also reported. Weekly readings on mortgage rates and jobless claims were also published.

July Construction Spending Rises

Construction spending rose from June’s seasonally adjusted annual pace of  $1.363 billion to $1,365 billion in July. The U.S. Census Department reports construction spending and readings are subject to adjustment. Growth in construction spending is due to a demand for homes in less congested areas.COVID-19 is creating more demand for larger homes that accommodate working from home.

Mortgage Rates Mixed as Jobless Claims Fall

Mortgage rate activity was mixed last week amid incremental changes. Freddie Mac reported that rates for 30-year fixed-rate mortgages rose two basis points to 2.93 percent; the average rate for 15-year fixed-rate mortgages fell by four basis points to 2.42 percent. Rates for 5/1 adjustable rate mortgages rose by two basis points to 2.93 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

New and continuing jobless claims fell last week. 881,000 initial jobless claims were filed last week as compared to 1.01 million first-time claims filed the prior week.13.25 million continuing jobless claims were filed last week as compared to Ongoing jobless claims were lower last week with 13.250 million claims filed as compared to 14.490 million ongoing unemployment claims filed during the prior week. Falling jobless claims indicate strengthening economic conditions as businesses reopen and employers rehire former employees and add new employees.

Jobs Growth Reports Mixed, National Unemployment Rate Falls

ADP reported 428,000  private-sector jobs added in August as compared to July’s reading of 212,000 jobs added. The Commerce Department’s Non-Farm Payrolls report showed 1.37 public and private-sector jobs.added in August as compared to 1.73 million jobs added in July. Analysts said that looming layoffs in airlines and travel sectors could slow job growth. The national unemployment rate fell to 8.40 percent in August from July’s reading of 10.20 percent.

 Based on these readings, the economy is rebounding from the impacts of COVID-19, but analysts were cautious as the three-day Labor Day weekend approached. COVID-19 cases rose after the Memorial Day and Fourth of July holidays. Increasing cases of COVID-19 could cause state and local governments to impose restrictions aimed at reducing the spread of the coronavirus. 

What’s Ahead

This week’s scheduled economic reports include reports on inflation and weekly readings on mortgage rates and jobless claims.

31
Aug
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – August 31, 2020

What's Ahead For Mortgage Rates This Week - August 31, 2020Last week’s economic news included readings from Case-Shiller Home Price Indices, along with data on new and pending home sales. Weekly readings on mortgage rates and new and continuing jobless claims were also published.

Case-Shiller: Home Price GrowthHolds Steady in June

National home prices grew at a seasonally-adjusted annual pace of 4.30 percent in June, which was unchanged from May’s year-over-year growth rate for home prices. The 20-City Home Price Index rose by 3.50 percent year-over-year in June.  

Phoenix, Arizona reported the leading year-over-year home price growth rate of 9.00 percent. Seattle, Washington held second place with a year-over-year home price growth rate of 6.50 percent. Home prices in Tampa, Florida grew at a year-over-year pace of 5.90 percent.   

Home price growth rates rose in five of 19 cities reported in the 20-City Index; the Wayne County Michigan metro area did not report for June’s 20-City Home Price Index. 

New Home Sales Rise as Pending Home Sales Dip in July

Sales of new homes rose for the third consecutive month in July according to the U.S. Census Bureau. July’s reading of 901,000 new homes sold on a seasonally adjusted annual basis was the highest pace of sales since 2006. Sales of new homes were 36 percent higher year-over-year. Slim inventories of pre-owned homes for sale and low mortgage rates boosted new home sales, but analysts said that builders also face headwinds including higher materials costs and affordability.

Pending home sales dropped in July from June’s year-over-year reading of 15.80 percent to July’s reading of 5.80 percent. Ongoing concerns over COVID-19, high unemployment rates and, concerns over jobs have caused would-be-homebuyers to delay their home purchase plans.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower rates for fixed-rate mortgages last week with the average rate for 30-year fixed-rate mortgages falling by eight basis points to 2.91 percent. The average rate for 15-year fixed-rate mortgages also fell by eight basis points to 2.46 percent. Rates for 5/1 adjustable rate mortgages averaged 2.91 percent and were unchanged from the prior week.

New jobless claims fell to 1.01 million claims filed from the prior week’s reading of 1.10 million initial claims filed. Continuing jobless claims were also lower with 14.54 million continuing claims filed as compared to the previous week’s reading of 14.76 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on construction spending, private and public sector jobs growth, and the national unemployment rate. Weekly reports on mortgage rates and jobless claims will also be released.