22
Mar
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – March 22, 2021

What's Ahead For Mortgage Rates This Week - March 22, 2021Last week’s economic reports included readings from the National Association of Home Builders on housing markets and Commerce Department data on housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims were also released.

NAHB: Builder Confidence Slips as Materials Costs Rise

The National Association of Home Builders reported that its Housing Market Index fell to an index reading of 82 in March as compared to February’s index reading of  84. Analysts forecasted a reading of 83. Builder concerns included rising materials costs and mortgage rates, which impact home pricing and affordability.  Robert Dietz, Chief Economist for NAHB, said that lumber prices have more than doubled since August 2020 and have added $24,000 to the cost of a home on average.

Regionally, builder confidence in housing markets declined in the Midwest, Northeast, and West but remained unchanged in the South.

Demand for new homes remained high as shortages of existing homes for sale persisted. Homebuilder sentiment was unchanged in the South but declined in the Northeast, Midwest, and Western regions of the U.S.

According to Commerce Department reports for February, housing starts declined to 1.42 million starts n a seasonally-adjusted annual basis as compared to January’s reading of 1.58 million housing starts. Building permits issued also reflected growing builder concerns as permits issued fell to 1.68 million permits issued from 1.89 million building permits issued in January.

Mortgage Rates Rise,  Jobless Claims Mixed

Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose by four basis points to 3.09 percent; the average rate for 15-year fixed-rate mortgages rose by two basis points to 2.40 percent. Mortgage rates for 5/1 adjustable rate mortgages averaged 2.79 percent and rose by two basis points.

Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

770,000 first-time jobless claims were filed last week as compared to the prior week’s reading of 725,000 new jobless claims filed. Severe winter weather in Texas boosted new claims, which significantly exceeded analysts’ expectations of 700,000 new claims filed.

Continuing jobless claims fell to 4.12 million claims from the prior week’s reading of 4.14 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on sales of new and previously-owned homes, inflation and consumer sentiment.  Weekly readings on mortgage rates and jobless claims will also be released.

08
Mar
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – March 8, 2021

What's Ahead For Mortgage Rates This Week - March 8, 2021Last 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 published along with weekly readings on mortgage rates and jobless claims. Federal Reserve Chair Jerome Powell also spoke at a jobs summit.

Construction Spending Rises in January

U.S construction spending rose at a seasonally-adjusted annual pace of 1.70 percent in January as compared to 1.10 percent growth reported in December. Year-over-year construction spending was 5.80 percent higher in January 2021.  Residential construction spending reported in January rose to $713 billion on a seasonally-adjusted annual basis as compared to December 2020’s construction spending pace of $695.70 billion.

Non-residential construction spending in the private sector rose to a seasonally-adjusted annual rate of $447 billion in January as compared to December 2020’s pace of $445.2 billion.

High demand for single-family homes persists as inventories of available homes fall. This scenario contributes to affordability issues that are also influenced by rising building materials costs.

Mortgage Rates, Jobless Claims Mixed

Freddie Mac reported higher rates for 30-year fixed-rate mortgages, which rose by five basis points and averaged 3.02 percent. Rates for 15-year fixed-rate mortgages were unchanged from the prior week and averaged 2.34 percent. Mortgage rates for 5/1 adjustable rate mortgages dropped by 26 basis points and averaged 2.73 percent. Discount points averaged 0.60 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.

First-time jobless claims rose to 745,000 new claims filed as compared to the prior week’s reading of 736,000 new claims filed. Ongoing jobless claims fell last week with 4.30 million continuing claims filed; 4.42 million ongoing claims were filed during the prior week.

Private- Sector Jobs Fall as Public-Sector Jobs Increase

ADP reported 117,000 private-sector jobs added in February as compared to January’s reading of 195,000 private-sector jobs added. The government’s Non-Farm Payrolls report for February showed 379,000 public and private sector jobs added in February; 166,000 public and private-sector jobs were added in January. The national unemployment rate fell to 6.20 percent as compared to January’s reading of 6.30 percent.

Fed Chair Promised to Hold Steady on Monetary Policy

Fed Chair Jerome Powell promised to maintain accommodative monetary policies for the foreseeable future as the Federal Reserve continues striving toward its dual mandate of achieving maximum employment and annual inflation of two percent. When asked about rising long-term rates, Mr. Powell said that he could not commit to reducing the Fed’s asset purchases as he thought that the Fed’s goal of achieving maximum employment was “highly unlikely.”

What’s Ahead

This week’s economic reporting includes readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released.

14
Dec
By First Rate Financial Group
Financial Reports

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

What's Ahead For Mortgage Rates This Week - December 14, 2020Last week’s scheduled economic reporting included readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

Inflation Rate Rises in November

Inflation rose by 0.20 percent in November according to the federal government, but this reading fell short of the Federal Reserve’s goal of achieving 2.00 percent inflation annually. November’s year-over-year inflation rate was 1.20 percent. October’s inflation reading was flat and analysts expected inflation to grow by 0.10 percent in November.

Core inflation, which excludes volatile food and fuel sectors, showed readings identical to the Consumer Price Index reading. November’s Core Consumer Price Index was impacted by lower food and fuel costs.

Supreme Court Hears Arguments in Shareholder Suit over Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac were put under the oversight of the Federal Housing Finance Agency after the Great Recession and resulting mortgage crisis. The Supreme Court heard oral arguments regarding shareholder assertions that oversight of Fannie Mae and Freddie Mac is unconstitutional.

Mortgage Rates Mixed as Jobless Claims Rise

Freddie Mac reported no change in average fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.71 percent; the average rate for 15-year fixed-rate mortgages was also unchanged at 2.26 percent.  Rates for 5/1 adjustable rate mortgages averaged 2.79 percent and were seven basis points lower than in the prior week. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages, 0.60 percent for 15-year fixed-rate mortgages, and  0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims were higher last week with 853,000 new claims filed as compared to 716,000 first-time claims filed the prior week. Analysts expected 720,000 first-time claims last week. Ongoing jobless claims also rose with 5.76 million claims filed as compared to the prior week’s reading of 5.53 million continuing claims filed. Increasing numbers of coronavirus cases caused higher than expected layoffs last week.

The University of Michigan’s Consumer Sentiment Index rose in December to an index reading of 81.4. Analysts expected December’s reading to decrease to 75.5 based on November’s index reading of 76.9. As winter progresses and Covid-19 cases continue to rise, consumer sentiment toward economic conditions will likely decline.

What’s Ahead

This week’s scheduled economic readings include reports from the National Association of Home Builders on housing market conditions; the Commerce Department will release reports on housing starts and building permits issued. The Federal Reserve will issue its Federal Open Market Committee Statement and Fed Chair Jerome Powell is slated to give a post-meeting press conference.