Mortgage Rates Archives

What's Ahead For Mortgage Rates This Week - August 31, 2020 Last week’s economic news included readings from Case-Shiller Home Price Indices, along with data on new and pending home sales. Weekly readings on mortgage rates and new and continuing jobless claims were also published.

Case-Shiller: Home Price GrowthHolds Steady in June

National home prices grew at a seasonally-adjusted annual pace of 4.30 percent in June, which was unchanged from May’s year-over-year growth rate for home prices. The 20-City Home Price Index rose by 3.50 percent year-over-year in June.

Phoenix, Arizona reported the leading year-over-year home price growth rate of 9.00 percent. Seattle, Washington held second place with a year-over-year home price growth rate of 6.50 percent. Home prices in Tampa, Florida grew at a year-over-year pace of 5.90 percent.

Home price growth rates rose in five of 19 cities reported in the 20-City Index; the Wayne County Michigan metro area did not report for June’s 20-City Home Price Index.

New Home Sales Rise as Pending Home Sales Dip in July

Sales of new homes rose for the third consecutive month in July according to the U.S. Census Bureau. July’s reading of 901,000 new homes sold on a seasonally adjusted annual basis was the highest pace of sales since 2006. Sales of new homes were 36 percent higher year-over-year. Slim inventories of pre-owned homes for sale and low mortgage rates boosted new home sales, but analysts said that builders also face headwinds including higher materials costs and affordability.

Pending home sales dropped in July from June’s year-over-year reading of 15.80 percent to July’s reading of 5.80 percent. Ongoing concerns over COVID-19, high unemployment rates and, concerns over jobs have caused would-be-homebuyers to delay their home purchase plans.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower rates for fixed-rate mortgages last week with the average rate for 30-year fixed-rate mortgages falling by eight basis points to 2.91 percent. The average rate for 15-year fixed-rate mortgages also fell by eight basis points to 2.46 percent. Rates for 5/1 adjustable rate mortgages averaged 2.91 percent and were unchanged from the prior week.

New jobless claims fell to 1.01 million claims filed from the prior week’s reading of 1.10 million initial claims filed. Continuing jobless claims were also lower with 14.54 million continuing claims filed as compared to the previous week’s reading of 14.76 million continuing jobless claims filed.

What’s Ahead

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

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, 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 31, 2020

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

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