- Mortgage rates increased another two basis points again last week according to the Freddie Mac Primary Mortgage Market Survey released on November 20th. This is the third small increase in as many weeks as both the 30 year and 15 year fixed rate mortgages have remained essentially flat. This is helping stimulate purchase activity.
- Mortgage applications decreased 5.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 14th. “Mortgage rates increased for the third consecutive week, with the 30-year fixed rate inching higher to its highest level in four weeks,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Application activity over the week was lower, with potential homebuyers moving to the sidelines again, although there was a small increase in FHA purchase applications. Refinance applications decreased as borrowers remain sensitive to even small increases in rates at this level. The overall average loan size across both purchase and refinance applications dipped to its lowest level since August of this year, driven by another drop in the ARM share.”
- The U.S. economy added jobs in September amid uncertainty about economic conditions, but job creation levels remained relatively subdued and added to signs of a weakening labor market. The Labor Department on Thursday reported that employers added 119,000 jobs in September. The unemployment rate rose to 4.4% in September, which was higher than economists’ expectations. Job gains in the prior two months were both revised in the September report, with job creation in July revised down by 7,000 from a gain of 79,000 to 72,000; while August job creation for August was revised down by 26,000 from a gain of 22,000 to a loss of 4,000. Taken together, employment in July and August combined was 33,000 lower than previously reported. The delayed September jobs report comes as the Federal Reserve is weighing whether to cut interest rates for the third consecutive meeting in December, amid uncertainty over the labor market and inflation.
- Federal Reserve officials were at odds during their October meeting over cutting interest rates, divided over whether a stalling labor market or stubborn inflation were bigger economic threats, minutes released Wednesday showed. While the Federal Open Market Committee approved a cut at the meeting, the path forward looks less certain. Disagreements stretched into the outlook for December, with officials expressing skepticism about the need for an additional reduction that markets had been widely anticipating, with “many” saying that no more cuts are needed at least in 2025. “Several participants assessed that a further lowering of the target range for the federal funds rate could well be appropriate in December if the economy evolved about as they expected over the coming intermeeting period,” the minutes said. “Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year.”
