Daily Rate Update: September 4th-7th

posted in: Uncategorized | 0

Friday – September 7, 2018

The Bureau of Labor Statistics reports that U.S. employers hired 201,000 new workers in August, above the 187,000 expected. However, June and July were revised lower by a total of 50,000 jobs. The big number within the report was the 0.4%t gain in wages from July to August, while year-over-year wages increased by 2.9%, the highest annual increase in nine years. The Unemployment Rate remained at 3.9%. Overall it was a solid report as the labor market is near or at full employment.

ATTOM Data Solutions reports the rate of home flipping declined in the second quarter of 2018 to a four-year low as the survey revealed that the number of distressed or low-priced homes for sale on the market dropped. There were 48,768 single-family homes flipped in the second quarter, which makes up about 5.2% of all sales. That figure is down 5.4% from a year ago. A flip is defined as a home that has been sold more than once in a 12-month period. “Fewer distressed sales are limiting the ability of home flippers to find deep discounts even while rising interest rates are shrinking the pool of potential buyers for flipped homes,” says Daren Blomquist, ATTOM’s senior vice president.

The national average price for a regular gallon of gasoline rose to $2.85 this week, but lower prices can be seen on the horizon. With the arrival of fall in a few weeks, demand for gas will ease as there will be less drivers on the road with summer vacations behind us. “With summer in the rearview mirror, demand is expected to significantly drop off in the coming weeks which means motorists can expect to see gas prices steadily decline,” said Jeanette Casselano, AAA spokesperson. “AAA expects the national average to hit $2.70 or less this fall.”

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Thursday – September 6, 2018

Optimism surrounding the strength of the U.S. economy pushed Bond prices lower this week while borrowing costs edged higher. Freddie Mac reports that the 30-year fixed-rate mortgage inched up two basis points to 4.54% with an average 0.5 in points and fees added on top of the rate. It was the second straight week rates pushed higher. Freddie Mac says, “Mortgage rates are now up three-quarters of a percentage point from last year and home prices – albeit at a slower pace – are still outrunning rising inflation and incomes.”

In the latest week, Americans filing for first-time unemployment benefits fell to lows not seen since 1969 as the labor market continues to strengthen. Weekly Initial Jobless Claims fell 10,000 in the latest week to 203,000, below the 214,000 expected. The four-week moving average of claims, which irons out seasonal abnormalities, declined 2,750 to 209,500, also the lowest since 1969. Most economists feel that the U.S. is at or just near full employment.

The service sector of the U.S. economy grew for the 103rd consecutive month in August as 16 non-manufacturing industries reported growth. The ISM Service Sector Index rose to 58.5 in August, above the 56.5 expected and up from 55.7 recorded in July. Any reading over 50 indicates expansion. The service sector is made up of professional and healthcare services along with other non-manufacturing industries and makes up about two-thirds percent of U.S. Gross Domestic Product.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Wednesday – September 5, 2018

Home loan rates were essentially unchanged in the latest week and remain near the low end when looking at rates going back 30 to 40 years. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage rose two basis points last week to 4.80%. In comparison, in the last week of August of 2008, the rate was 6.40% while the same week in 1988 saw a 10.67% rate. The 4.80% rate does carry an average point of 0.46. The MBA went on to report that the refinance index fell 1.4% while the purchase index rose 0.6%.

Short-term interest rates will most likely rise modestly at the end of the month as the Federal Reserve is expected to raise the short-term Fed Funds Rate. The Fed Funds Rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight. The Fed Funds Rate is currently at 2.0% and is expected to increase to 2.25% at the September 25-26 Federal Open Market Committee meeting. The Fed Funds Rate will most likely push rates for autos, credit cards, personal loans and student loans slightly higher.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – September 4, 2018

Home prices rose at a solid pace in July, though the gains are beginning to moderate due in part to higher home loan rates and home prices, notes Frank Nothaft, Core Logic’s chief economist. CoreLogic reports that home prices, including distressed sales, rose 6.2% from July 2017 to July 2018 and increased 0.3% from June to July 2018. The 6.2% annual increase in July comes after the 6.8% rise from June 2017 to June 2018. CoreLogic forecasts that home prices will rise 5.1% from July 2018 to July 2019.

National manufacturing rose to its highest level in 14 years in August as the economy continues to grow stronger. The ISM Index rose to 61.3 last month, due in part to strength in its core components: new orders, production and employment. The 61.3 was well above the 57.6 expected and up from 58.1 in July. The report said that the U.S. economy grew for the 112th consecutive month in August. A reading above 50 indicates that the manufacturing economy is generally expanding; below 50 indicates that it is generally contracting.

The Commerce Department reports that construction spending rose a modest 0.1% from June to July, up 5.8% from July 2017. Private residential spending rebounded in July, rising 0.6% from June after two straight months of declines. The report went on to reveal that spending increased in public and federal government construction while state and local government spending also increased.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp