Tag: Jobless Claims

What’s Ahead For Mortgage Rates This Week – July 23rd, 2018

Last week’s scheduled economic releases included readings from the National Association of Home Builders and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released

What's Ahead For Mortgage Rates This Week 7-23-18Last week’s scheduled economic releases included readings from the National Association of Home Builders and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released

NAHB Housing Market Index Unchanged in July

The National Association of Home Builders Housing Market Index held steady in July despite concerns connected with tariffs on building materials. Analysts said that high demand for homes continued to fuel builder confidence in housing market conditions, but some analysts said that housing market conditions may be at or near peak.

Builder confidence in current market conditions was unchanged with a reading of 74; confidence in housing market conditions within the next six months rose two points to 75. Builder confidence in buyer traffic in new single- family developments also rose two points to 52. Any reading over 50 indicates that more builders are confident about housing market conditions than not.

Commerce Department: Housing Starts, Building Permits Fall

June housing starts fell according to the Commerce Department with 1.173 million starts on a seasonally-adjusted annual basis. Housing starts were 12.30 percent lower than downwardly-revised readings for May. Building permits issued also fell in June. 1.273 million permits were issued on a year-over-year basis as compared to May’s reading of 1.301 million permits issued year-over-year. Builders faced difficulty in producing homes at attractive pricing due to increased costs of building materials.

Builder confidence in buyer traffic in new single-family developments rose two points to an index reading of 52 in June. Summer months typically see more home buyer traffic due to school vacations providing a transitional period for families seeking new homes.

Mortgage Rates Mixed, Weekly Jobless Claims Fall

Freddie Mac reported mixed and minimal movement in mortgage rates last week. Mortgage rates for 30-year fixed rate mortgages were one basis point lower at 4.52 percent; rates for a15-year fixed rate mortgages averaged 4.00 percent which was two basis points lower. Rates for 5/1 adjustable rate mortgages averaged one basis point higher at 3.87 percent.  Discount points averaged 0.40 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 207,000 claims filed, which was lower than the expected reading of 224,000 new claims filed and the prior week’s reading of 215,000 new claims filed.

What’s Ahead

This week’s economic releases include readings on sales of new and pre-owned homes, housing vacancies and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.

 

What’s Ahead For Mortgage Rates This Week – June 25th, 2018

Last week’s economic reports included readings from the National Association of Home Builders, Commerce Department reports on housing starts and building permits issued. Sales of pre-owned homes were reported along with weekly readings on mortgage rates and new jobless claims.

What’s Ahead For Mortgage Rates This Week – June 25th, 2018Last week’s economic reports included readings from the National Association of Home Builders, Commerce Department reports on housing starts and building permits issued. Sales of pre-owned homes were reported along with weekly readings on mortgage rates and new jobless claims.

Builder Confidence Slips as Trade Wars Boost Lumber Prices

According to the National Association of Home Builders, home builder confidence in current market conditions was down two points to 68 as compared to May’s index reading of 70. Analysts said that rising lumber prices impacted builder sentiment and have replaced labor costs as builders’ primary expense.

Increased building costs were cited as a concern for builders despite high demand for homes and limited homes for sale. Rising materials costs were attributed to trade wars caused by recent tariffs on lumber.

NAHB said that three components of the Home Builders Housing Market Index were also lower in June. Builder confidence in current market conditions slipped one point to an  index reading of 75; builder confidence in market conditions within the next six months also dropped one point to 76.

Builder confidence in buyer traffic in new housing developments dipped one point to 50. Any reading over 50 indicates more builders than fewer were confident about housing market conditions.

Housing Starts Hit 11-Year High in May

May housing starts surpassed April’s reading of 1.280 million starts on a seasonally-adjusted annual basis. May’s reading of 1.350 million starts also surpassed expectations of 1.300 million starts. Higher volume and faster pace of building homes was good news for real estate and mortgage industry pros, as building more homes is the only way to relieve marked shortages of available homes in many areas.

Rising materials costs could dampen construction pace as tariffs and resulting trade wars increase. May’s reading for housing starts was the highest since 2007 and was 20.00 percent higher year-over-year.

Building permits issued in May were 4.60 percent lower than April’s reading. Building permits were issued at a pace of 1.301 million permits on a seasonally-adjusted annual basis.

Sales of Pre-Owned Homes Slip as Supply Tightens

Previously owned homes sold at a slower pace in May as short supplies of homes constrained already tight markets. The National Association of Realtors® reported 5.43 million sales on a seasonally-adjusted annual basis. Analysts expected a reading of 5.52 million sales based on April’s reading of 5.45 million sales. May sales of previously owned homes were three percent lower year-over-year.

Analysts said that there is little relief in sight and that there is a growing disparity in home sales; sales of homes worth $250,000 or more were up six percent, while sales of homes worth less than $250,000 fell by eight percent. Short supplies of homes for sale encouraged bidding wars and sidelined first-time and moderate-income buyers.

Mortgage Rates, New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week; the rate for a 30-year fixed rate mortgage dropped five basis points to 4.57 percent; rates for a 15-year fixed mortgage were eight basis points lower at 4.04 percent and rates for 5/1 adjustable rate mortgages were unchanged at an average of 3.83 percent.

Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and were 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 218,000 claims filed last week as compared to the prior week’s reading of 221,000 new claims filed and expectations of 220,000 new claims.

What‘s Ahead

This week’s scheduled economic releases include Case-Shiller Home Price Indices, new and pending home sales and weekly readings on mortgage rates and new jobless claims.

What’s Ahead For Mortgage Rates This Week – May 29th, 2018

Last week’s economic reports included readings on sales of new and previously-owned homes along with weekly readings on mortgage rates and new jobless claims.

What’s Ahead For Mortgage Rates This Week – May 29th, 2018Last week’s economic reports included readings on sales of new and previously-owned homes along with weekly readings on mortgage rates and new jobless claims.

Home Sales Lower in April

Sales of new and previously-owned homes were lower in April. The Commerce Department reported sales of new homes at a seasonally-adjusted annual rate of 662,000 sales. New home sales were 1.50 percent lower than for March, but were11.60 percent higher year-over-year.

Analysts expected new home sales to rise to 682,000 sales based on the March reading of 672,000 new homes sold.  Sales of new homes are calculated based on a small sample of sales and are typically subject to adjustment. Year-to date sales were 8.40 percent higher year-over-year.

New home sales were downwardly revised for the past three months, which could indicate a slowing in the market. Higher interest rates and rising home prices may be taking a toll on buyer enthusiasm. Fewer buyers caused the inventory of homes for sale to increase to a 5.40month supply. Real estate pros typically consider a six-month supply of available homes a normal inventory of homes for sale.

Sales of previously owned homes were also lower in April; the National Association of Realtors® reported seasonally-adjusted annual sales of 5.46 million homes as compared to expected sales of 5.50 million and March sales pace of 5.60 million sales of previously-owned homes. While fewer sales can relieve demand and ease rising home prices, it appeared that potential buyers are waiting for more options.

Sales of pre-owned homes were 2.50 percent lower than for March and were 1.40 percent lower year-over-year; this was the second consecutive month for a lower year-over-year sales reading. The inventory crunch of pre-owned homes for sale has reduced the average sales period to decrease to 26 days.

Mortgage Rates Rise, Sideline Buyers and Sellers as New Jobless Claims Rise

Freddie Mac reported the highest average mortgage rates in seven years. 30-year mortgage rates averaged 4.66 percent; rates for a 15-year fixed rate mortgage averaged 4.15 percent and rates for 5/1 adjustable rate mortgages averaged 3.87 percent.

Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. Mortgage rates have not risen so fast at the beginning of the year for 40 years. Analysts at Freddie Mac said that home sellers, as well as buyers, may be sidelined as inventories of homes shrink and mortgage rates rise. This could mean that sellers as well as buyers will wait until market conditions and mortgage rates ease.

First-time home buyers accounted for 33 percent of existing home sales; this was lower than the average of 40 percent. First-time buyers are important to real estate markets as their purchases of pre-owned homes enable homeowners to buy their next homes.

New jobless claims rose to 234,000 claims filed as compared to expectations of 219,000 new claims filed. 223,000 new claims were filed the prior week.

What‘s Ahead

This week’s scheduled economic releases include readings from Case-Shiller on home prices, construction spending and pending home sales. ADP and Non-Farm payrolls and the national unemployment rate will also be released.

What’s Ahead For Mortgage Rates This Week – May 21st, 2018

Last week’s economic releases included the National Association of Home Builders Housing Market Index for May, Commerce Department reports on housing starts and building permits issued. Weekly readings on mortgage rates and first-time jobless claims were also released.

What’s Ahead For Mortgage Rates This Week – May 21st, 2018Last week’s economic releases included the National Association of Home Builders Housing Market Index for May, Commerce Department reports on housing starts and building permits issued. Weekly readings on mortgage rates and first-time jobless claims were also released.

Home Builder Confidence Rises in May

According to the National Association of Home Builders, home builders surveyed indicated higher confidence in housing market conditions for May. April’s reading was downwardly revised to an index reading of 68; analysts expected a reading of 69.  May’s home builder confidence reading was 70. Any reading over 50 indicates that more builders consider housing market conditions to positive.

Three-month rolling readings for regions showed mixed results in May. Northeast and Western regions were unchanged with index readings of 55 and 76 respectively. Midwestern and Southern regions posted a one-point drop with respective index readings of 65 and 92. The NAHB cited high lumber prices as a concern and said that rising materials costs were impacting builders’ ability to produce affordable housing for first-time buyers.

Both housing starts and building permits issued were lower in April than for March; The Commerce Department reported1.287 million housing starts in April as compared to 1.336 million starts in March. Housing starts are calculated on a seasonally-adjusted annual basis. Although housing starts were 3.70 percent lower in April, analysts said there was little concern as the rate of housing starts remained near the highest levels in 11 years.

April’s decline in housing starts was attributed to volatile multi-unit projects; construction rates for single-family homes were little changed. The South reported an increase in housing starts as all other regions reported fewer housing starts. Builders said that labor shortages continue to impact construction rates. Analysts expected construction rates to expand throughout 2018 as demand for homes rises. Building permits issued fell in April to a seasonally-adjusted annual rate of 1.352 million from the March reading of 1.377 million permits issued.

Mortgage Rates, New Jobless Claims

Mortgage rates rose to their highest level in seven years. Rates for a 30-year fixed rate mortgage were six basis points higher and averaged 4.61 percent. The average rate for a 15-year fixed rate mortgage was seven basis points higher at 4.08 percent. Mortgage rates for a 5/1 adjustable rate mortgage averaged five basis points higher at 3.82 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose to 222,000 new claims last week as compared to 211,000 new claims filed the prior week. Analysts expected 215,000 new claims filed.

What‘s Ahead

This week’s economic releases include readings on sales of new and previously-owned homes and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.

What’s Ahead For Mortgage Rates This Week – July 18, 2016

Last week’s economic news included reports on inflation, retail sales and weekly readings on mortgage rates and weekly jobless claims.

Whats Ahead For Mortgage Rates This Week January 04 2016Last week’s economic news included reports on inflation, retail sales and weekly readings on mortgage rates and weekly jobless claims.

Mortgage rates were mixed with average rate for a 30-year fixed rate mortgage rising by one basis point to 3.42 percent. The average rate for a 15-year mortgage dropped by two basis points to 2.72 percent, and the average rate for a 5/1 adjustable rate mortgage rose six basis points to 2.76 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 5/1 adjustable rate mortgages and 0.40 percent for 15 year fixed rate mortgages. Freddie Mac said that recent patterns in mortgage rates suggested that rates are likely to remain low throughout the summer; last year the average rate for a 30-year fixed rate mortgage was 4.09 percent.

Inflation Grows at Steady Rate

Inflation grew by 0.20 percent in June according to the Consumer Price Index issued by the government. Rent, gas and pharmaceuticals drove the increase, while grocery prices declined. The Core Consumer Price Index, which excludes volatile food and energy sectors, also grew by 0.200 percent; this reflects lower grocery prices and relatively low fuel costs.

Increasing rents could propel more renters into the home buying market, but high home prices and short supplies of available homes continue to limit home buyer choices. Inflation remains below the Federal Reserve’s target of 2.00 percent annually; this indicates that the Fed isn’t likely to raise its target federal fund rates in the near future.

Home and Garden Sales Drive June Retail Sales

Homeowners were busy with home improvements and yard work in June; this boosted retail sales to 0.50 percent against an expected reading of 0.10 percent and May’s reading of 0.20 percent. June retail sales excluding automotive sales rose from May’s reading of 0.40 percent to 0.70 percent; analysts had expected retail sales exclusive of autos to grow by 0.50 percent in June.

New Jobless Claims Hold Steady, Consumer Sentiment Dips

Weekly jobless claims were unchanged at 254,000 new claims filed; analysts had expected new claims to increase to 265,000 new claims. A wave of new claims created by end-of-school-year layoffs caused new claims to jump in recent weeks, but analysts said that layoffs remain low. New jobless claims remained well below the benchmark of 300,000 for the 71st consecutive week. This extended the longest time that new jobless claims were below 300,000 since 1973.

What’s Ahead

This week’s scheduled economic news includes the NAHB Housing Market Index, Existing Home Sales, Housing Starts and Building Permits. Weekly readings on mortgage rates and new jobless claims will also be released.

What’s Ahead For Mortgage Rates This Week – July 11, 2016

New jobless claims were decreased to a three-month low of 254,000 as compared to expectations of 265,000 new claims and the prior week’s reading of 270,000 new claims. New jobless claims were higher after the end of the school year, when some school workers became eligible for benefits when schools closed for summer break.

Whats Ahead For Mortgage Rates This Week April 27 2015Last week’s economic news included minutes from the most recent meeting of the Fed’s Federal Open Market Committee (FOMC) along with several reports on private and public sector employment and the national unemployment rate. Weekly reports on mortgage rates and new jobless claims were also released.

FOMC Minutes: Committee Closely Monitoring Economic Developments

The minutes of June’s FOMC meeting indicate that Fed policymakers continue to be cautious based on low inflation and close review of domestic and global economic developments. Committee members acknowledged improvements in the housing market, but also noted that annual inflation remains below the Fed’s two percent goal. Low inflation and wage growth presented obstacles to would-be home buyers who continued to face rapidly rising home prices and low inventories of available homes. FOMC members voted not to increase the current target federal funds rate of 0.25 to 0.50 percent.

FOMC’s June meeting occurred before Great Britain’s decision to leave the EU, which created volatility in financial markets and caused mortgage rates to drop.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported an across-the-board drop in average mortgage rates last week. The average rate for a 30-year fixed rate mortgage fell by seven basis points to 3.41 percent and the rate for a 15-year fixed rate mortgage averaged 2.74 percent. Rates for a 5/1 adjustable rate averaged 2.68 percent. Discount points were unchanged at 0.50, 0.40 and 0.50 percent respectively.

New jobless claims were decreased to a three-month low of 254,000 as compared to expectations of 265,000 new claims and the prior week’s reading of 270,000 new claims. New jobless claims were higher after the end of the school year, when some school workers became eligible for benefits when schools closed for summer break.

Job Creation Jumps After May Lull

Non-farm payrolls expanded significantly in June after May’s sharp drop. 287,000 jobs were created in June as compared to expectations of 173,000 new jobs and May’s dismal reading of 11,000 new jobs. The non-farm payrolls report includes readings for public and private sector jobs. June’s ADP payrolls report measures private-sector jobs; June’s reading surpassed May’s reading of 168,000 jobs with 172,000 new jobs.

In related news, the Commerce Department reported that national unemployment increased from May’s reading of 4.80 to 4.90 percent. Analysts said that this uptick may not be bad news, but instead indicated an expanding workforce. Unemployment readings are based on the number of workers seeking work and don’t include workers who have left the workforce.

What’s Ahead

This week’s scheduled economic releases include the Consumer Price Index, Core CPI, retail sales and consumer sentiment. Weekly reports on mortgage rates and new jobless claims will also be released.

What’s Ahead For Mortgage Rates This Week – June 20, 2016

Mortgage rates fell after Federal Reserve policymakers decided not to raise the Fed’s target federal funds rate. The Federal Open Market Committee cited ongoing concerns over global financial and economic developments and slow jobs growth as factors in its decision not to raise rates. Fed Chair Janet Yellen emphasized the committee’s decision-making process is not predetermined and said that ongoing review of current and developing news is significant to monetary policy decisions.

Whats Ahead For Mortgage Rates This Week January 18 2016Mortgage rates fell after Federal Reserve policymakers decided not to raise the Fed’s target federal funds rate. The Federal Open Market Committee cited ongoing concerns over global financial and economic developments and slow jobs growth as factors in its decision not to raise rates. Fed Chair Janet Yellen emphasized the committee’s decision-making process is not predetermined and said that ongoing review of current and developing news is significant to monetary policy decisions.

Last week’s economic news also included the NAHB Housing Market Index, the monthly inflation rate and retail sales along with weekly reports on mortgage rates and new jobless claims.

Home Builder Confidence Rises in June

According to the National Association of Home Builders Housing Market Index, Home builder confidence rose one point to a June reading of 60. May’s reading was 58 and analysts expected a reading of 59. June’s reading broke a four-month streak of unchanged readings. Sub-readings used to calculate the Housing Market Index were one point higher at 64 for current market conditions. Builders had higher confidence in market conditions for the next six months. June’s reading was five points higher at 70. June’s reading for buyer traffic remained below the benchmark of 50 at 47. The NAHB gauge of buyer traffic in new homes hasn’t hit 50 since the peak of the housing bubble.

National inflation as measured by the Consumer Price Index was lower in May at 0.20 percent as compared to April’s reading of 0.40 percent; analysts expected a reading of 0.30 percent. Core inflation held steady at 0.20 percent; the core reading excludes volatile food and energy sectors, but energy prices, fuel prices and food are major components of household budgets.

The Federal Reserve has set an annual inflation rate of 2.00 percent as a benchmark reading for its consideration or raising the federal funds rate. Readings have remained consistently lower in recent years, which contributed to the Fed’s decision not to raise interest rates.

Mortgage Rates Fall as Jobless Claims Rise

Freddie Mac reported lower average mortgage rates for fixed and adjustable mortgages last week. 30-year fixed rate mortgages dropped f six basis points to an average of 3.54 percent. Rates for a 15-year fixed rate mortgage averaged

2.81 percent, which was also six basis points lower. The average rate for a 5/1 adjustable rate mortgage was eight basis points lower at 2.740 percent. Lower mortgage rates are welcomed by first-time and moderate income homebuyers as home prices continue to rise.

New jobless claims rose to 277,000 as compared to an expected reading of 270,000 new claims and the prior week’s reading of 264,000 new claims. Analysts attributed the jump in new claims to seasonal influences including new claims filed by school workers eligible for benefits when classes aren’t in session.

What’s Ahead

Next week’s scheduled economic reports include reports on new and existing home sales along with weekly reports on mortgage rates and new jobless claims. A monthly reading of consumer sentiment will also be released.

What’s Ahead For Mortgage Rates This Week – January 25, 2016

Last week’s scheduled economic news included releases from the National Association of Home Builders, Housing Starts, and Existing Home Sales. Weekly reports on new jobless claims and mortgage rates were also released.

Whats Ahead For Mortgage Rates This Week January 25 2016Last week’s scheduled economic news included releases from the National Association of Home Builders, Housing Starts, and Existing Home Sales. Weekly reports on new jobless claims and mortgage rates were also released. 

The National Association of Realtors® reported that sales of previously owned homes rose to 5.46 million sales on an annual seasonally adjusted basis in December. This reading surpassed expectations of 5.21 million sales and November’s reading of 4.76 million sales. November’s low reading was in part affected by new mortgage rules, which delayed some closings into December. Economic factors pushing housing markets include low driven by falling fuel costs easing consumers’ budgets could provide confidence to move up to a larger home and for first time buyers to enter the market.

Existing Home Sales Up 7.6 Percent in December

There was a 3.9 month supply of pre-owned homes on the market in December; this was the lowest inventory since January 2005. High demand for homes and a slim supply of available homes continued to tighten housing markets. Growing demand for homes coupled with a shortage of homes for sale are driving up prices; the national average price of a pre-owned home rose 7.60 percent in December to $224,100. Rapidly rising home prices present an obstacle to first time buyers and as home prices rise, more buyers will face affordability concerns.

Housing Starts dipped in December to 1.15 million as compared to expectations of 1.23 million and November’s reading of 1.18 million housing starts annually. Builders constructed homes in 2015 at the highest rate since the recession. While December’s reading fell short of expectations, housing starts increased nearly 11 percent year-over-year. While builders cite obstacles such as shortages of land and labor, a growing pace of housing starts is seen as a partial solution to the shortage of available homes.

Building permits issued increased 12 percent in 2015; permits issued gauge future building activity and supply of available homes.

Mortgage Rates Fall for Third Consecutive Week

Average mortgage rates fell last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage dropped 11 basis points to 3.81 percent; the rate for a 15-year fixed rate mortgage fell by nine basis points to an average of 3.10 percent. The average rate for a 5/1 adjustable rate mortgage dropped 10 basis points to 2.91 percent. Discount points averaged 0.60, 0.50 and 0.40 percent respectively. Sean Becketti, chief economist for Freddie Mac, cited turbulence in the financial markets as a factor contributing to lower mortgage rates.

New jobless claims rose to a seven week high of 293,000 new claims as compared to expectations of 279,000 new claims and the prior week’s reading of 283,000 new claims. The four-week rolling average of new claims jumped by 6.500 new claims to an average of 285,000 claims. Lingering layoffs of temporary holiday workers were cited as contributing to higher first-time claims.

What’s Ahead

Next week’s scheduled events include data on new and pending home sales, the Case-Shiller home price indexes. The Fed will release its latest FOMC statement. Weekly reports on mortgage rates and new jobless claims will be released as usual. Reports on consumer confidence and sentiment will also be released.

What’s Ahead For Mortgage Rates This Week – January 11, 2016

The first week of 2016 was quiet concerning housing and mortgage related news, but reports on construction spending and several labor-related reports were released.

You Ask, We Answer: 5 Ways That You Can Proactively Build and Improve Your Credit ScoreThe first week of 2016 was quiet concerning housing and mortgage related news, but reports on construction spending and several labor-related reports were released. Construction spending is connected to housing markets as it provides evidence of builder confidence and also future housing supply. Labor market trends provide a sense of economic performance in general and can influence potential buyers on decisions about buying or not buying homes.

Construction Spending Dips in November

According to the Commerce Department, construction spending dropped by 0.40 percent in November to a seasonally adjusted annual reading of $1.12 trillion. November’s reading was short of the expected reading of 0.90 percent, which was based on October’s original reading of a 1.00 percent increase in construction spending. October’s reading was later revised downward to 0.30 percent. November’s construction spending was 10.50 percent higher year-over-year.

While private construction spending decreased by 0.20 percent in November, it was up 12.10 percent year-over-year due to housing construction. Housing markets have been squeezed due to consistently short supplies of available homes. New construction is seen as an important way to ease the bottleneck as buyers sit on the sidelines waiting for homes to come on the market.

Residential construction was up 0.30 percent in November and increased 10.80 percent year-over-year.

Mortgage Rates Mixed, Weekly Jobless Claims Lower

Freddie Mac reported mixed results for mortgage rates. The average rate for a 30-year fixed rate mortgage dropped four basis points to 3.97 percent; the average rate for a 15-year fixed rate mortgage rose two basis points to 3.26 percent and the average rate for a 5/1 adjustable rate mortgage rose by one basis point to 3.09 percent. Last week’s discount points averaged 0.60 percent for 30-year fixed rate mortgages, 0.50 percent for 15 year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New weekly jobless claims fell to 277,000 as compared to expectations of 275.000 and the prior week’s reading of 287,000 first-time claims. Fewer first-time claims for jobless benefits point to stronger economic conditions in general as evidenced by expanding job markets. National unemployment held steady 5.00 percent, which mirrored expectations and the same as November’s reading.

Labor Department: 292,000 New Jobs Added in December

According to the Labor Department, 292,000 new jobs were added in December, which resulted in the fifth consecutive year where jobs grew by 2 million or more year-over-year. Upward revisions to jobs reports for October and November supported stronger economic conditions. October’s reading was adjusted from 298,000 new jobs to 307,000 new jobs; November’s original reading for new jobs was raised from 211,000 jobs added to 252.000 jobs added.

Last week’s positive jobs reports were released against a backdrop of market volatility due to fears that the Chinese economy is slowing. As the second largest global economy, China’s economy could influence global financial markets and economic conditions if it experiences serious difficulties.

What’s Ahead

This week’s scheduled economic releases include reports on job openings, retail sales and the Federal Reserve’s Beige Book. In addition to reports on mortgage rates and new jobless claims, a reading on consumer sentiment will round out this week’s news.

What’s Ahead For Mortgage Rates This Week – December 21, 2015

Last week’s scheduled economic reports included the NAHB Housing Market Index, Housing Starts, FOMC statement and Fed Chair Janet Yellen’s press conference. In addition to weekly reports on jobless claims and mortgage rates, inflation reports were also released.

Whats Ahead For Mortgage Rates This Week December 21 2015Last week’s scheduled economic reports included the NAHB Housing Market Index, Housing Starts, FOMC statement and Fed Chair Janet Yellen’s press conference. In addition to weekly reports on jobless claims and mortgage rates, inflation reports were also released.

Builder Confidence Slips, Housing Starts Increase

According to the NAHB / Wells Fargo Housing Market Index for December, home builder confidence slipped by one point to a reading of 61 as compared to an expected reading of 63 and November’s reading of 62. December’s reading was three points higher year-over-year. Readings over 50 indicate that more builders than fewer are confident about housing market conditions. December’s confidence reading remained higher than 2015’s average reading of 59.

Components used in comprising the NAHB HMI also slipped in December. Builder confidence in current market conditions fell one point to a reading of 66; the six months sales outlook fell two points to 67 and the reading for buyer foot traffic in new developments also decreased by two points to a reading of 46. The reading for buyer foot traffic has consistently remained below the neutral benchmark of 50 since the housing bubble ended.

While builder confidence eased, housing starts rose in November with 1.17 million starts reported. Analysts expected a reading of 1.14 million starts based on October’s reading of 1.06 million housing starts. During much of 2015, demand for homes accelerated due to slim inventories of available homes; new construction is seen as essential to easing demand.

Fed Raises Interest Rates, Mortgage Rates Higher

The Federal Open Market Committee of the Federal Reserve raised its target federal funds rate from a range of 0.00 to 0.25 percent to a range of 0.25 percent to 0.50 percent. While the Fed’s increase is expected to affect consumer lending rates for auto loans and credit cards more than mortgages, Freddie Mac reported that rates for fixed rate home loans rose last week. The average rate for a 30-year fixed rate mortgage rose by two basis points to 3.95 percent and the average rate for a 15-year fixed rate mortgage increased by three basis points to 3.22 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 3.03 percent. Discount points were unchanged for fixed rate mortgages at 0.60 percent and 0.50 percent respectively while average points for a 5//1 adjustable rate mortgage dropped to an average of 0.40 percent.

Weekly jobless claims fell to 271,000 new claims against expectations of 275,000 new claims and the prior week’s reading of 282,000 new claims.

What’s Ahead

Next week’s economic reports include reports on new and existing home sales, consumer spending and consumer sentiment. Weekly jobless claims and Freddie Mac’s mortgage rates report will also be released as scheduled. No reports will be released on Friday due to the Christmas holiday.

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