It’s been a good week for anyone looking to buy or refinance. Mortgage rates have improved slightly for the first time in a couple weeks.
We got the monthly jobs report out this morning and that came in below expectations, helping to keep rates on the low side for the week. Read on for more details.
Where are mortgage rates going?
Rates finish down on the week
Today the employment situation (a.k.a. the monthly jobs report) for April got released.
That report comes out the first Friday every month and is one of the most closely watched reports.
After a disappointing headline reading last month analysts were calling for the labor market to bounce back with about 191,000 jobs added.
Unfortunately, that wasn’t the case as the headline reading came in at 164,000.
Average hourly earnings also missed the mark, coming in one tenth below what analysts had called for at 0.1%.
Mortgage rates typically move higher when positive economic data comes out so a weaker report such as this one kept rates from spiking.
Rates move lower in Freddie Mac Primary Mortgage Market Survey
Some good news for anyone looking to buy or refinance right now is that mortgage rates moved lower in the Freddie Mac PMMS this week. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell by three basis points to 4.55% (0.5 points)
- The average rate on a 15-year fixed rate mortgage inched up one basis point to 4.03% (0.4 points)
- The average rate on a 5/1-year adjustable rate mortgage fell five basis points to 3.69% (0.3 points)
Here is what the Freddie Mac Economic and Housing Research Group had to say about mortgage rates this week:
“After steadily rising in most of April, average mortgage rates dipped slightly over the past week.
The 30-year fixed mortgage rate declined three basis points to 4.55 percent in this week’s survey. While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring. The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity.
It’s also good news that first-time buyers appear to be having more success so far this year – despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Rate/Float Recommendation
Lock now before rates rise
Mortgage rates held steady this week which is great news for anyone looking to buy a home or refinance their current mortgage.
It’s possible that mortgage rates stay in a tight range for a while but it does seem as though there is a greater likelihood of them rising than falling.
So if you want to avoid the risk of a higher rate, we recommend you lock in a rate soon.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Employment Situation
- See above for details
Fedspeak
- New York Fed President William Dudley at 8:30am
- San Francisco Fed President John Williams at 3:0pm
- Fed Vice Chairman Randal Quarles at 5:30pm
Notable events this week:
Monday:
- Personal Income and Outlays
- Chicago PMI
- Pending Home Sales Index
- Dallas Fed Mfg Survey
Tuesday:
- FOMC Meeting Begins
- PMI Manufacturing Index
- ISM Mfg Index
- Construction Spending
Wednesday:
- ADP Employment Report
- EIA Petroleum Status Report
- FOMC Meeting Ends
Thursday:
- International Trade
- Jobless Claims
- Productivity and Costs
- PMI Services Index
- Factory Orders
- ISM Non-Mfg Index
Friday:
- Employment Situation
- Fedspeak
*Terms and conditions apply.
Source: totalmortgage.com