Mortgage rates were relatively constant, with 30-year fixed rates only increasing 1 basis point. After holding steady the week before, rates only rose for the 4thNS Time in 11 weeks.
In the week that ends 9NS The 30-year fixed rate in September rose 1 basis point to 2.88%.
30-year mortgage rates have risen above the 3% mark only once.NS April.
Compared to this point in the previous year, the 30-year fixed interest rate rose by 2 basis points.
30-year fixed interest rates are still 206 basis points lower than the last high of 4.94% in November 2018.
Economic data of the week
It was a quieter first half of the week as US markets closed for Labor Day on Monday.
Key stats included JOLT’s job vacancies from the US, which were bullish after disappointing NFP numbers the week before.
However, with the US stats on the lighter side, weaker than expected non-farm employment from the previous week was pegged to interest rates.
Freddie Mac Awards
The average weekly rate on new mortgages as of September 9th was from Freddie Mac to be:
According to Freddie Mac,
While the economy continues to grow, it has lost momentum in the past 2 months due to the current wave of the Delta variant.
The result was weaker employment, lower spending and falling consumer confidence, all of which pushed interest rates lower.
Despite rising inflation, interest rates have remained stable due to supply and demand imbalances.
The net result for housing is that these low and stable prices give customers more time to find the homes they are looking for.
Counseling the Mortgage Bankers Association
For the week ending 3approx September the Prices became:
The average interest rates for 30-year fixed bonds with corresponding loan balances remained unchanged at 3.03%. The points fell from 0.34 to 0.33 (including issuing fee) for 80% LTV loans.
The average 30-year FHA-secured fixed rate mortgage fell from 3.09% to 3.07%. The points rose from 0.25 to 0.30 (including issuing fee) for 80% LTV loans.
The 30-year average jumbo credit balance increased from 3.13% to 3.14%. The points rose from 0.26 to 0.30 (including issuing fee) for 80% LTV loans.
The weekly numbers released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of the volume of mortgage loan applications, was up for the week ended of year 3. decreased by 1.9%approx September. In the previous week the index had fallen by 2.4%.
The refinancing index fell 3% and was 4% lower than in the same week a year ago. The index was down 4% in the previous week.
Week ends 3approx In September, the refinancing share of the mortgage business remained unchanged at 66.8%. In the previous week, the share had fallen from 67.3% to 66.8%.
According to the MBA,
The volume of mortgage applications fell last week to its lowest level since mid-July as mortgage rates stayed above 3% for several weeks.
The refinancing volume has weakened, while the purchase volume continues to be lower than expected due to the lack of apartments on the market.
Economic data has shown mixed signals, with slower employment growth but a further decline in the unemployment rate in August.
We expect further improvements to slow down FED MBS purchases by the end of the year. This should put some upward pressure on mortgage rates.
For the coming week
A busier week is ahead on the economic data front. US inflation numbers on Tuesday and industrial production numbers on Wednesday will have an impact.
A further rise in inflationary pressures would likely favor the Fed’s schedules for tapering. While employment growth has slowed, a sustained rise in inflationary pressures should be contained. So expect further inflationary pressures to drive mortgage rates north.
this items was originally published on FX Empire