Wednesday – November 10, 2021
Home borrowing costs fell this week and remain just above historic lows. Freddie Mac reports that the 30-year fixed-rate mortgage declined 11 basis points to 3.28% with 0.7 in points and fees. The record low was 2.65% on January 7 of this year. Sam Khater, Freddie Mac’s Chief Economist said, “These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, means that purchase demand will remain strong into next year. However, affordability pressures continue to be an ongoing concern for homebuyers.”
The inflation reading Consumer Price Index (CPI) rose 0.9% monthly versus the gain of 0.6% expected and up from +0.4% in September as consumers spent big on an array of goods and services. The annual rate soared by 6.2%, the hottest number since October 1990. Higher costs were seen from energy, housing, food along with new and used autos. The Core CPI rose 0.6% monthly and 4.6% annually, the hottest yearly pace since July 1991.
First-time unemployment claims fell to lows not seen since before the shutdowns began in late March 2020. At present, there are almost 11 million jobs available across the nation. The Labor Department reports that Weekly Initial Jobless Claims fell 4,000 to 267,000 for the week ended November 6, 2021. Continuing claims, or those receiving benefits for at least two weeks straight, increased to 2.160 million from 2.10 million. The labor market should continue to improve with holiday hiring underway.
Courtesy of Mortgage Market Guide
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Tuesday – November 9, 2021
The NFIB Small Business Optimism Index decreased slightly in October as owners continue to deal with the lack of workers for unfilled positions and inventory shortages. The index fell to 98.2 down 0.9 points. Within the report, it showed that the NFIB Uncertainty Index decreased while business conditions outlook fell to its lowest level since November 2012. “Small business owners are attempting to take advantage of current economic growth but remain pessimistic about business conditions in the near future,” said NFIB Chief Economist Bill Dunkelberg. “One of the biggest problems for small businesses is the lack of workers for unfilled positions and inventory shortages, which will continue to be a problem during the holiday season.”
Prices at the pump continue to rise even though the winter months usually cut down on demand and prices fall. Motor club AAA reports that the national average price for a regular gallon of gasoline hit $3.42 this week, the highest since September 2014. The price is up from $3.26 a month ago and from $2.11 seen a year ago. AAA says that OPEC’s decision to not release further supply while the U.S. has now become energy dependent from energy independence a year ago are several factors for the increase.
Wholesale prices inched higher in October but remained unchanged annually as the inflation situation continues to impact the U.S. financial markets. The Producer Price Index for October rose 0.6% from 0.5% and came in unchanged annually at 6.8%. The more closely watched Consumer Price Index will be released tomorrow.
Courtesy of Mortgage Market Guide
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