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.

24
Aug
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – August 24, 2020

What's Ahead For Mortgage Rates This Week - August 24, 2020Last week’s economic news included readings from Case-Shiller on home prices, the National Association of Home Builders Housing Market Indices, and sales of previously-owned homes. Readings on housing starts and building permits issued were released. Weekly reports on mortgage rates, new and continuing jobless claims were also published.

NAHB: Home Builder Confidence Rises in August

The National Association of Home Builders reported that builder confidence in housing market conditions rose six points to an index reading of 78.in August. The expected reading of 73 was based on July’s reading of 72. Homebuilder confidence was based on sharp demand for homes as city dwellers sought larger homes in less dense housing metro areas.

Ongoing shortages of pre-owned homes for sale boosted builder outlook as would-be buyers turned to new homes as supplies of pre-owned homes remained low.

The National Association of Realtors® reported higher numbers of previously owned homes sold in July at a seasonally adjusted annual pace of 5.86 million sales. 5.50 million sales of previously owned homes were expected based on June’s seasonally adjusted annual pace of 4.70 million sales.

Rising home sales could indicate increasing numbers of available homes, rising confidence in the economy, and sellers putting their homes on the market for reasons including buying bigger homes or relocation for less congested living conditions.

Commerce Department Reports Rising Rates of Housing Starts and Building Permits Issued

The Commerce Department reported a jump in U.S. housing starts in July with a seasonally adjusted annual rate of 1.496 million starts as compared to an expected pace of 1.330 million housing starts and an annual pace of  1.258 million housing starts reported in June.

Mortgage Rates Rise; Jobless Claims Mixed

Freddie Mac reported higher mortgage rates last week; the average rate for 30-year fixed-rate mortgages rose three basis points to 2.99 percent. Rates for 15-year fixed-rate mortgages averaged 2.54 percent and were eight basis points higher. Interest rates for 5/1 adjustable rate mortgages averaged one basis point higher at 2.91 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.

Initial jobless claims reported by states rose to 1.11 million new claims filed last week and surpassed the expected a reading of 910,000 new claims filed based on the prior week’s reading of  971,000 initial jobless claims filed. Continuing jobless claims fell to 14.80 million ongoing claims from the prior week’s reading of 15.50 million continuing claims.

What’s Ahead

This week’s scheduled economic news includes readings from Case-Shiller Home Price Indices, reports on new and pending home sales, and inflation. Weekly reports on mortgage rates and jobless claims will also be released.

17
Aug
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – August 17, 2020

 

Last week’s scheduled economic news included readings on inflation and retail sales. Weekly reports on mortgage
rates and new and continuing jobless claims were also released. In other news, the FHFA announced an increase in
fees charged by Fannie Mae and Freddie Mac for home loan refinance transactions.
Inflation Readings Mixed as Retail Sales Fall
Consumer prices rose by 0.60 percent in July and matched June’s reading. Analysts expected a July reading of 0.40
percent growth. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose by 0.60
percent in July and exceeded June’s reading of 0.20 percent and July’s expected reading of 0.20 percent price
growth.
Retail sales dropped to 1,20 percent growth in July as compared to June’s reading of 8.40 percent growth. July’s
retail sales reading fell short of the expected rate of 2.00 percent. Retail sales excluding the automotive sector rose
by 1.90 percent in July as compared to June’s retail sales growth rate of 8.30 percent Declining retail sales were
likely caused by a resurgence in Covid-19 cases in some areas.
State and local guidance on retail re-openings varied and likely impacted retail sales according to how Covid-19
regulations were interpreted and enforced. The federal government failed to enact a second round of stimulus
payments that would have provided Americans with extra cash for purchasing retail goods and services.
Mortgage Rates Rise as Jobless Claims Fall
Freddie Mac reported higher average mortgage rates last week; rates for 30-year fixed-rate mortgages rose by eight
basis points to 2.96 percent on average. Rates for 15-year fixed-rate mortgages rose by two basis points to 2.46
percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 percent. Discount points averaged
0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.
First-time jobless claims fell to 963,000 claims as compared to the prior week’s reading of 1.19 million new claims
filed and expectations of 1.08 million initial claims filed Continuing jobless claims were also lower than for the
previous week. 15.50 million ongoing jobless claims were filed last week as compared to 16.10 million claims filed
during the prior week. Falling jobless claims numbers could reflect the re-openings of business and rehiring of
employees. This progress could be short-lived as Covid-19 cases increased last week in some states where re-
opening may have been done too soon.
What’s Ahead
This week’s scheduled economic news includes readings from the National Association of Home Builders on
housing market trends, and Commerce Department reports on housing starts and building permits issued. Weekly
reports on mortgage rates and jobless claims will also be released.

What's Ahead For Mortgage Rates This Week - August 17, 2020Last week’s scheduled economic news included readings on inflation and retail sales. Weekly reports on  mortgage rates and new and continuing jobless claims were also released. In other news, the FHFA announced an increase in fees charged by Fannie Mae and Freddie Mac for home loan refinance transactions.

 Inflation Readings Mixed as Retail Sales Fall

Consumer prices rose by 0.60 percent in July and matched June’s reading. Analysts expected a July reading of 0.40 percent growth. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose by 0.60 percent in July and exceeded June’s reading of 0.20 percent and July’s expected reading of 0.20 percent price growth. 

Retail sales dropped to 1,20 percent growth in July as compared to June’s reading of 8.40 percent growth. July’s retail sales reading fell short of the expected rate of 2.00 percent. Retail sales excluding the automotive sector rose by 1.90 percent in July as compared to June’s retail sales growth rate of 8.30 percent Declining retail sales were likely caused by a resurgence in Covid-19 cases in some areas.

State and local guidance on retail re-openings varied and likely impacted retail sales according to how Covid-19 regulations were interpreted and enforced. The federal government failed to enact a second round of stimulus payments that would have provided Americans with extra cash for purchasing retail goods and services.

 

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week; rates for 30-year fixed-rate mortgages rose by eight basis points to 2.96 percent on average. Rates for 15-year fixed-rate mortgages rose by two basis points to 2.46 percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 963,000 claims as compared to the prior week’s reading of 1.19 million new claims filed and expectations of 1.08 million initial claims filed Continuing jobless claims were also lower than for the previous week. 15.50 million ongoing jobless claims were filed last week as compared to 16.10 million claims filed during the prior week. Falling jobless claims numbers could reflect the re-openings of business and rehiring of employees. This progress could be short-lived as Covid-19 cases increased last week in some states where re-opening may have been done too soon.

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market trends, and Commerce Department reports on housing starts and building permits issued. Weekly reports on mortgage rates and jobless claims will also be released.