17
Jun
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – June 17th, 2019

What’s Ahead For Mortgage Rates This Week – June 17th, 2019Last week’s economic reports included readings on inflation, retail sales and consumer sentiment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Consumer Price Index Lower in May as Retail Sales Hold Steady

Last month’s Consumer Price Index, which is a widely-used gauge of inflation, dropped to 0.10 percent in May and matched expectations. April posted month-to-month growth of 0.30 percent. Core inflation, which excludes volatile food and fuel sectors, rose 0.10 percent in May and fell short of expectations of 0.20 percent growth.

April’s Core Consumer Price Index grew by 0.10 percent. Analysts reported a likely slowdown in economic expansion last week. Consumers, vendors and financial analysts said trade wars and global economic uncertainty were factors in concerns over economic conditions.

Retail sales rose from April’s reading of 0.30 percent to 0.50 percent in May; retail sales without automotive sales held steady with 0.50 percent growth. April retail sales also had 0.50 percent growth.

Mortgage Rates Stay Near Two Year Low

Freddie Mac reported average mortgage rates were little changed last week. 30-year mortgage rates averaged 3.52 percent and were unchanged from the prior week. 15-year fixed mortgage rates averaged 3.26 percent and were two basis points lower.

5/1 adjustable rate mortgages dropped one basis point to 3.51 percent on average. Discount points averaged 0.60 percent for 30-year fixed rate mortgages, 0.50 percent for 15-year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose to 222,000 claims filed last week, which exceeded expectations of 218,000 new claims based on the prior week’s reading of 219,000 initial jobless claims. Analysts said that labor markets remained solid, but layoffs in California and Pennsylvania caused new jobless claims to rise last week.

The University of Michigan reported lower consumer sentiment in June with an index reading of 97.90 as compared to May’s reading of 100.00; 40 percent of consumers surveyed cited concerns over pending tariffs against Mexico for falling confidence in economic conditions.

The tariffs against Mexico were sidelined, which may boost consumer confidence readings in July. When tariffs were set against imports from China, only 21 percent of survey participants identified tariffs as cause for concern.

What‘s Ahead

This week’s scheduled economic releases include reports from the National Association of Home Builders on housing markets conditions, the Federal Reserve’s FOMC meeting statement and a press conference from Fed Chair Jerome Powell. Data on sales of pre-owned homes will be released along with weekly readings on mortgage rates and new jobless claims.

10
Jun
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – June 10th, 2019

What’s Ahead For Mortgage Rates This Week – June 10th, 2019Last week’s economic releases included readings on construction spending, public and private sector jobs and national unemployment. Weekly reports on mortgage rates and first-time unemployment claims were also released.

Construction Spending Little Changed in April

Census Bureau readings for April showed a minor dip in construction spending as compared to revised figures for March. $1,295.5 billion was spent on a seasonally-adjusted annual basis and missed the expected reading of $1,314.7 billion.

March construction spending was revised to $1,299.2 billion. Falling mortgage rates were good news for home buyers, but concerns over global economic disputes and higher materials prices concerned home builders.

Mortgage Rates Fall as Initial Jobless Claims Hold Steady

Freddie Mac reported lower average mortgage rates across the board. 30-year fixed mortgage rates dropped 17 basis points to 3.82 percent; the average rate for 15-year fixed rate mortgages fell 18 basis points to 3.28 percent and the average rate for 5/1 adjustable rate mortgages fell eight basis points to 3.22 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Initial jobless claims were unchanged with 218,000 first-time claims filed.  Monthly labor reports issued for May showed sharply lower jobs growth for public and private sector jobs.

Public and Private Sector Jobs Growth Dips in May

In a potential warning of slowing economic growth, public and private sector job creation fell far short of expected readings in May. The Labor Department’s Non-Farm Payrolls report showed 75,000 new jobs in May as compared to expectations of 180,000 new jobs and April’s reading of 224,000 public and private sector jobs created.

ADP’s report for private sector jobs growth was equally dismal for May; 27,000 jobs were created as compared to April’s revised reading of 271,000 private sector jobs created. Mark Zandi, who developed ADP jobs reporting, said “The economy is weakening; growth is slowing and slowing sharply.” The national unemployment rate was unchanged at 3.60 percent, which matched expectations. Analysts said that signs of slower economic growth could lead the Federal Reserve to implement monetary easing. 

What‘s Ahead

This week’s scheduled economic news includes readings on inflation, retail sales and consumer sentiment. Weekly reports on mortgage rates and new jobless claims will also be released.

03
Jun
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – June 3rd, 2019

What’s Ahead For Mortgage Rates This Week – June 3rd, 2019Last week’s economic news included readings from Case-Shiller on home prices and pending home sales. Readings on consumer confidence and weekly reports on mortgage rates and new jobless claims were also released.

Case-Shiller: Home Price Growth Slows in March

While home prices continue to rise throughout the U.S., they are growing at a slower pace. Case-Shiller reported that Home prices dropped 0.20 percent in March to a growth rate of 3.70 percent on a seasonally-adjusted annual basis. Case-Shiller said that March home price growth was the lowest rate reported in 10 years.

Top cities for home price growth in March were Last Vegas, Nevada with a seasonally-adjusted year-over-year home price growth rate of 8.20 percent; Home prices rose 6.10 percent in Phoenix, Arizona and increased by 5.30 percent in Tampa, Florida. These three metro areas suffered steep declines in home prices during the recession.

Home prices are no longer growing at double-digit rates, and the West Coast is no longer experiencing rapid growth of home prices previously reported in Seattle, Washington, San Francisco and Los Angles California metro areas. Analysts said that while home-buyers continue to seek homes in temperate climates, they are no longer looking in high-cost coastal metro areas. New York City was the only metro area reporting a month-to- month negative growth rate in home prices, but it is already one of the highest cost housing markets in the nation.

Pending Home Sales Fall for 16th Consecutive Month

According to the National Association of Realtors®, the annual rate of pending home sales fell for the 16th consecutive month in April. The Midwest region was the only region to report growth in pending home sales with a reading of +1.30 percent growth. Northeastern regional pending sales fell by -1.80 percent. Pending home sales dropped -2.50 percent in the South and fell by -1.80 percent in the West. Real estate pros and mortgage lenders track pending home sales as an indicator of future home sales closed and mortgage loan volume.

Mortgage Rates Fall as New Jobless Claims Rise

 Mortgage rates fell across the board last week in response to uncertainty in global markets. Rates for 30-year fixed rate mortgages fell seven basis points to 3.99 percent; rates for 15-year fixed rate mortgages averaged 3.46 percent and fell five basis points. Rates for 5/1 adjustable rate mortgages fell an average of eight basis points to 3.60 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Weekly jobless claims rose to 215,000 initial claims and matched expectations. Analysts did not find last week’s increase of 3000 new claims filed an indicator of weakening economic conditions.  Unemployment remains near an all-time low set in 1968.

Consumer confidence as reported by the University of Michigan’s consumer sentiment index was revised to reflect a dip in consumer confidence after tariffs on Chinese imports were imposed. Consumer confidence dropped to an index reading of 100.0 as compared to May’s initial reading of 102.4.

What‘s Ahead

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