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.

 

29
Jun
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – June 29, 2020

What's Ahead For Mortgage Rates This Week - June 29, 2020Last week’s scheduled economic news included readings on sales of new and pre-owned homes and reports on inflation. Weekly reports on mortgage rates and new and continuing jobless claims were also released.

Home Sales Results Mixed for May

The National Association of Realtors® reported fewer sales of pre-owned homes in May at a seasonally-adjusted annual pace of 3.91 million sales. Analysts expected 3.80 million sales as compared to April’s reading of 4.33 million sales. This was the lowest reading for sales of pre-owned homes since July 2010 and sales were 26.60 percent lower year-over-year.

Lawrence Yun,  the chief economist for the National Association of Realtors®, said that sales were expected to rise as coronavirus-related restrictis were lifted and people returned to work. Mr. Yun said in a report that sales of previously-owned homes should surpass last year’s annual sales pace in the second half of 2020. Mr. Yun made this forecast before rising coronavirus cases occurring after the reopening of the economy started.

There was a 4.80 months supply of previously-owned homes for sale in May, which was below the six-months supply indicating a balanced market.

The Commerce Department reported 676,000 new homes sold in May on a seasonally-adjusted annual basis; this surpassed expectations of 650,000 sales and April’s revised annual sales pace of 580,000 new homes sold. New home sales rose by 45.50 percent in May in the Northeastern region; New home sales rose by 29 percent in the West and 15.20 percent in the South, New home sales fell by -6.40 percent in the Midwest.

The average sale price of new homes was $317,900 in May. There was a 5.60 months supply of new homes available in May, which nearly matched the six months average inventory.

Mortgage Rates Hold Steady as JoblessClaims Fall

Freddie Mac reported little change in average mortgage rates last week. Rates for 30-year fixed-rate mortgages were unchanged at an average rate of 3.13 percent; The average rate for 15-year fixed-rate mortgages rose by one basis point to 2.59 percent and the average rate for 5/1 adjustable rate mortgages fell one basis point to 3.08 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 1.48 million from the prior week’s reading of 1.51 million new claims. Continuing jobless claims were also lower last week with 19.50 million claims filed as compared to 20.30 million claims filed the previous week.

Rising Inflation Indicates Improving Economy

Inflation rose to a seasonally-adjusted annual pace of 8.20 percent in May as compared to April’s reading of -12.60 percent Analysts expected the inflation rate to reach 9.90 percent.

What’s Ahead

This week’s scheduled economic news releases include readings on pending home sales, Case-Shiller Home Price Indices, and labor-sector jobs reports. The national unemployment rate will be released along with weekly readings on mortgage rates and new and continuing jobless claims.

 

 

 

17
Mar
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week -March 17th, 2020

What’s Ahead For Mortgage Rates This Week -March 17th, 2020Last week’s scheduled economic reports included readings on inflation and consumer sentiment. Weekly readings on mortgage rates and new jobless claims were also released.

Inflation Holds Steady in February

The Consumer Price Index rose 0.10 percent in February and matched January’s reading. Analysts expected no inflationary growth for February and noted that the Coronavirus had not yet impacted national inflation.

Higher rents and grocery prices caused inflation to rise in February. Year-over-year, the Consumer Price Index rose 2.30 percent in February after posting its highest reading of 2.50 percent in January; analysts expect inflation to decrease in the coming months.

The Core Consumer Price Index, which excludes volatile food and energy sectors, grew by 0.20 percent and matched expectations and January’s growth rate.

Mortgage Rates Mixed as New Jobless Claims Fall

Freddie Mac reported that the average rate for 30-year fixed-rate mortgages rose seven basis points to 3.36 percent last week after posting the lowest rate on record the prior week. The average rate for 15-year fixed-rate mortgages fell two basis points to 2.77 percent.

The average rate for 5/1 adjustable rate mortgages dropped by 17 basis points to 3.01 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable rate mortgages.

New jobless claims fell to 211,000 claims filed from the prior week’s reading of 215,000 first-time claims filed. Consumer sentiment dropped to an index reading of 95.90 in March as compared to February’s reading of 101.00; analysts expected consumer sentiment to fall to an index reading of 95.00.

The March reading was the weakest in five months and was attributed to fears of the Coronavirus. The current consumer sentiment index covered data through March 11 and index readings are expected to fall lower as impacts of the Coronavirus unfold.

What’s Ahead

This week’s scheduled economic news includes readings from the National Association of Home Builders on housing market conditions, sales of pre-owned homes reported by the National Association of Realtors® and Commerce Department readings on housing starts and building permits issued.

The Federal Reserve will issue its post-meeting statement of its Federal Open Market Committee and Fed Chair Jerome Powell will give a press conference after the FOMC statement. Additional economic news and policy announcements related to the Coronavirus may also be released.