18
Oct
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – October 18, 2021

What's Ahead For Mortgage Rates This Week - October 18, 2021

Last week’s economic reporting included readings on inflation, core inflation, and minutes of the Fed’s Federal Open Market Committee meeting held on September 22 and 23. Weekly readings on mortgage rates and jobless claims were also published.

September’s Consumer Price Index rose by 0.10 percent to 0.40 percent. The Core Consumer Price Index for September, which excludes volatile food and fuel sectors, rose by 0.10 percent to 0.20 percent and fell short of the expected reading of 0.30 percent growth.

Feds’ FOMC Meeting Minutes: Policymakers Consider Tapering Securities Purchases

Minutes of the Federal Open Market Committee meeting held September 21 and 22 indicated that policymakers discussed when to taper the Fed’s purchase of U.S. Treasuries and Mortgage-Backed Securities. Opinions were mixed as some policymakers recommended faster tapering of asset purchases and others were concerned about the potentially negative impact on financial markets if the Fed reduced its asset purchases too quickly. No specific dates for tapering asset purchases were set during the current FOMC meeting, but analysts expected the Committee to announce its plan for tapering asset purchases at its next meeting.

FOMC members also discussed inflation and were divided on their forecasts for inflation. While some members expected high inflationary growth in 2022, other FOMC members said that Covid-related bottlenecks in supply chains caused higher inflation in the near term.

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose by six basis points to 3.05 percent. The average rate for 15-year fixed-rate mortgages rose by seven basis points to 2.30 percent; rates for 5/1 adjustable-rate mortgage rose averaged 2.55 percent and were three basis points higher Discount points averaged 0.70 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 293,000 new claims filed as compared to the previous week’s reading of 329,000 first-time claims filed. Continuing jobless claims also fell with 2.59 million ongoing claims filed; 2.73 million ongoing claims were filed in the previous week.

What’s Ahead

This week’s scheduled economic reporting includes readings from the National Association of Home Builders on housing market conditions. Reporting on sales of previously-owned homes, housing starts, and building permits issued are expected; weekly readings on mortgage rates and jobless claims will also be released.

11
Oct
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – October 11, 2021

What's Ahead For Mortgage Rates This Week - October 11, 2021Last week’s scheduled economic news included readings on public and private-sector jobs and the national unemployment rate. Weekly readings on mortgage rates and jobless claims were also published.

Non-Farm Payrolls: Jobs Growth Dips Sharply in September

U.S. jobs growth dipped sharply in September according to the federal government’s Non-Farm Payrolls report. 194,000 public and private sector jobs were added and fell far short of the expected reading of 500,000 jobs added. 366,000 public and private sector jobs were added in August. Hiring lagged as continuing concerns over Covid kept workers at home. Less hiring at public schools reduced September’s jobs growth at a time when schools traditionally hire for the upcoming school year.

ADP reported 568,000 private-sector jobs added in September; analysts expected 425,0000 jobs added based on 340,000 private-sector jobs added in August. In related news, the national unemployment rate fell to 4.80 percent in September as compared to August’s jobless rate of 5.20 percent. Analysts expected the national unemployment rate to drop to 5.10 percent in September.

Mortgage Rates Mixed, Jobless Claims Fall

Fixed mortgage rates fell last week as the average rate for a 30-year fixed-rate mortgage fell two basis points to 2.99 percent; rates for 15-year fixed-rate mortgages fell by five basis points on average to 2.23 percent. The average rate for 5/1 adjustable rate mortgages rose by four basis points to 2.52 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages

New and continuing jobless claims fell last week as 326,000 initial jobless claims were filed as compared to the previous week’s reading of 364,000 first-time claims filed. Analysts expected 345,000 initial jobless claim filings. 2.71 million continuing jobless claims were filed last week as compared to the previous week’s reading of 2.81 million ongoing jobless claims filed.

What’s Ahead

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

 

04
Oct
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – October 4, 2021

What's Ahead For Mortgage Rates This Week - October 4, 2021Last week’s economic reporting included readings from S&P Case Shiller Home Price Indices, the National Association of Realtors®’ report on pending home sales, and the University of Michigan’s final consumer sentiment index for September. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller Reports 4th Consecutive Month of Record Home Price Growth

July Home Prices grew at a year-over-year pace of 19.70 percent as compared to June’s home price growth rate of 18.70 percent according to S&P Case-Shiller’s National Home Price Index.

The S&P Case-Shiller 20-City Home Price Index reported that July home prices grew by 19.90 percent year-over-year; 17 of 20 cities posted higher home price growth rates in September than in August. The top three home price growth rates in the 20-City Home Price Index were held by Phoenix, Arizona at 32.40 percent; San Diego, California home prices grew by 27.80 percent, and Seattle, Washington home prices grew by 25.50 percent year-over-year in September.

Craig Lazzara, managing director and global head of investment strategy for S&P Dow Jones Indices, said “The last several months have been extraordinary not only in the level of price gains but in the consistency of gains across the country.” This differed from the traditional pattern of rapid home price growth in high-demand coastal metro areas as the covid pandemic drove homebuyers to seek out less congested and less expensive metro areas.

Pending home sales rose by 8.10 percent in August according to the National Association of Realtors® and far exceeded analyst expectations of 1.20 percent growth and July’s reading of -1.80 percent growth in pending home sales. Pending home sales are sales for which purchase contracts are signed, but the transactions are not completed. Real estate pros and mortgage lenders use pending home sales to predict future home sales and loan closings.

Mortgage Rates, Initial Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week as the yield on 10-Year Treasuries rose. The average rate for 30-year fixed-rate mortgages rose by 13 basis points to 3.01 percent; rates for 15-year fixed-rate mortgages also rose by 13 basis points and averaged 2.28 percent. Rates for 5/1 adjustable rate mortgages averaged 2.48 percent and five basis points higher. 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.

Initial jobless claims increased to 362,000 first-time claims filed from the previous week’s reading of 351,000 new claims filed. Ongoing jobless claims decreased to 2.80 million continuing claims filed as compared to the prior week’s reading of 2.82 million continuing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index rose to an index reading of  72.8 in September from August’s reading of 71.0. Analysts expected no change from August’s reading. 

What’s Ahead

This week’s scheduled economic reporting includes readings on public and private sector jobs, the national unemployment rate, and weekly readings on mortgage rates and jobless claims.