10
Jan
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – January 10, 2022

What's Ahead For Mortgage Rates This Week - January 10, 2022

Last week’s economic reporting included readings on construction spending and labor sector readings on jobs and unemployment. Weekly reports on mortgage rates and jobless claims were also released.

Construction Spending Unchanged, Falls Short of Expectations

The Commerce Department reported that construction spending rose by 0.4 percent in November to a seasonally-adjusted annual pace of $1.63 trillion and  9.30 percent year-over-year, Residential construction spending drove spending higher; month-to-month spending rose by 0.90 percent in November and was 16 percent higher year-over-year. Analysts expected overall construction spending to rise by 0.70 percent from October to November.

High demand for homes continued to drive residential construction spending, but spending on office construction fell by 32.10 percent year-over-year. Work-from-home options increased as employers and workers faced covid-related challenges.

Mortgage Rates Rise; Jobs Data Mixed

Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose 11basis points to 3.22 percent. The average rate for 15-year fixed-rate mortgages was 10 basis points higher at 2.43 percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.41 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.50 percent.

First-time jobless claims rose by 207,000 claims filed as compared to the prior week’s reading of 200,000 initial claims filed. Analysts expected 195,000 new claim filings. Continuing jobless claims rose last week with 1.75 million ongoing claims filed; 1.72 million continuing jobless claims were filed in the prior week.

The government’s Non-Farm Payrolls report for December reported 199,000 public and private sector jobs added, which fell far short of the expected reading of 422,000 jobs added and November’s reading of 249,000 jobs added. Analysts said that the spread of the omicron variant of the covid virus slowed job searches and hiring.

ADP reported 807,000 private-sector jobs added in December, which surpassed expectations of 375,000 jobs added and November’s reading of 505,000 private-sector jobs added. The national unemployment rate fell to 3.90 percent as compared to the prior month’s reading of 4.20 percent. The unemployment rate is based on the number of unemployed workers actively seeking work and does not include workers who stopped looking for work.

What’s Ahead

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

03
Jan
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – January 3, 2022

What's Ahead For Mortgage Rates This Week - January 3, 2022

Last week’s economic reporting included readings from S&P Case-Shiller Home Price Indices and the National Association of Realtors® released its monthly report on pending home sales. Weekly reports on mortgage rates and jobless claims were also released.

S&P Case-Shiller Reports Show Slower Gains in Home Prices

October home price readings from S&P Case-Shiller Home Price Indices showed slower home price growth in October than for September. Nationally, October home prices rose 19.10 percent year-over-year as compared to 19.70 percent year-over-year home price growth in September. October’s reading was the fourth highest since the inception of the National Home Price Index 34 years ago.

Case-Shiller’s 20-City Home Price Index reported 18.40 percent home price growth year-over-year, as compared to September’s reading of 19.10 percent year-over-year home price growth in September. Home prices for cities included in the 20-City Home Price Index rose by 0.80 percent between September and October. Phoenix, Arizona held on to first place in the 20-City Index with year-over-year home price growth of 32.30 percent; Tampa, Florida followed with year-over-year home price growth of 28.10 percent. Miami, Florida reported year-over-year home prices rose by 25.70 percent in October.

All 20 cities posted double-digit year-over-year gains in home prices. The two cities tied for the lowest year-over-year home price growth rate of 11.50 percent were Chicago, Illinois, and Minneapolis, Minnesota. Analysts said that while home price growth is slowing, prices will continue to rise in 2022.

In related news, pending home sales fell by 2.20 percent in November and were 2.70 percent lower year-over-year. The Midwest posted the largest year-over-year decline in pending home sales with a reading of -6.30 percent.

Mortgage Rates Rise, Jobless Claims Fall

Freddie Mac reported higher mortgage rates last week as rates for 30-year fixed-rate mortgages rose by six basis points to an average of 3.11 percent. Rates for 15-year fixed-rate mortgages rose by three basis points to an average rate of 2.33 percent. Rates for 5/1 adjustable rate mortgages averaged 2.41 percent and were four basis points higher.

Discount points averaged 0.70 percent for fixed-rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell last week to 198,000 first-time claims filed; analysts expected 205,000 new claims filed based on the previous week’s reading of 206,000 initial claims filed. Continuing jobless claims also fell with1.72 million claims filed as compared to the prior week’s reading of 1.86 million ongoing jobless claims filed.

What’s Ahead

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

27
Dec
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – December 27, 2021

What's Ahead For Mortgage Rates This Week - December 27, 2021Last week’s scheduled economic reporting included readings on sales of new and previously-owned homes along with weekly data on mortgage rates and jobless claims.

Home Sales Increase in November

Sales of new and previously-owned homes rose in November. The Commerce Department reported sales of new homes rose to 744,000 sales on a seasonally-adjusted annual basis. October sales of new homes were revised to a year-over-year reading of 662,000 new homes sold, which was the lowest reading since the worst stage of the pandemic in April 2020.  Analysts expected a year-over-year reading of 766,000 new homes sold for November. The median price of new homes sold in October reached a record high of $416,900.The number of homes for sale fell by 8.50 percent between October and November and represented a 6.50 month supply of new homes for sale.

Sales of previously-owned homes also rose in November with 6.46 million sales on a seasonally-adjusted annual basis. November’s reading fell short of the expected reading of 6.50 million sales of previously-owned homes but surpassed October’s reading of 6.34 million sales.

Rising numbers of mortgage applications indicated that demand for homes remains high, but mortgage rates are expected to rise in 2022. Given rising home prices, the additional challenge of higher mortgage rates will negatively impact affordability for some prospective home buyers.

Mortgage Rates Fall, Jobless Claims Data Mixed

Freddie Mac reported lower mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by seven basis points to 3.05 percent. Rates for 15-year fixed-rate mortgages averaged 2.30 percent and were four basis points lower than for the previous week. Rates for 5/1 adjustable rate mortgages averaged 2.37 percent and eight basis points lower. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Initial jobless claims held steady at 205,000 new claims filed last week. Analysts expected a reading of 206,000 first-time claims filed. Continuing jobless claims fell to 1.86 million ongoing claims from the previous week’s reading of 1.87 million continuing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index rose to an index reading of 70.6 and exceeded the expected reading of 70.4, which matched November’s reading.

What’s Ahead

This week’s scheduled economic reporting includes S&P Case-Shiller Home Price Indices and data on pending home sales. Weekly readings on mortgage rates and jobless claims will also be released.