Nosari Home Mortgage, Inc.

Chris Nosari

  • About
  • Blog
  • Apply
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Reverse Mortgages
  • Reviews
    • Zillow Reviews
    • Facebook Reviews
    • Additional Reviews
  • Contact
You are here: Home / Market Outlook / What’s Ahead For Mortgage Rates This Week – Feburary 8, 2016

What’s Ahead For Mortgage Rates This Week – Feburary 8, 2016

February 8, 2016 by Nosari Home Mortgage, Inc.

Whats Ahead For Mortgage Rates This Week Feburary 8 2016Last week’s scheduled economic news included reports on construction spending and several labor-related reports along with weekly reports on mortgage rates and new jobless claims. The details:

Construction Spending Higher in December

U.S. construction spending rose by 0.10 percent in December for a seasonally adjusted annual total of $1.12 trillion. The Commerce Department reported that construction firms spent 10.5 percent more than in 2014. Residential construction spending totaled $416.8 billion for 2015, which was 12.60 percent higher than in 2015.

Higher construction spending can be a double-edged sword, as it can indicate that builders are stepping up construction or that they are paying higher prices for labor and supplies. Builders have consistently cited labor shortages and slim supplies of build-able land as concerns. Short supplies of available homes impacted housing markets in 2015. Low inventories of homes drive up home prices and impact affordability for first-time buyers; these conditions eventually slow housing markets with fewer qualified buyers and home sales.

Fed Benchmarks Show Mixed Readings

The Federal Reserve consistently cites its goals of achieving maximum employment and an inflation rate of 2.00 percent as benchmarks for its decision to raise or not raise the target federal funds rate. National unemployment reached a new low of 4.90 percent in January against expectations of 5.00 percent and December’s reading of 5.00 percent. Inflation held steady with no increase in January; this offsets the good news concerning unemployment. Lower oil prices are holding inflation well below the Fed’s desired rate of 2.00 percent.

Mortgage Rates Fall, Jobless Claims Rise

Freddie Mac reported lower average rates across the board. The average rate for a 30-year fixed rate mortgage fell by seven basis points to 3.72 percent; the corresponding rate for 15 year mortgages fell six basis points to 3.01 percent and the average rate for a5/1 adjustable rate mortgage dropped five basis points to 2.85 percent. Average discount points were 0.60, 0.50 and 0.40 percent respectively.

Weekly jobless claims rose to 285,000 new claims against expectations of 280,000 new claims and the prior week’s reading of 277,000 new jobless claims. While rising jobless claims could suggest a slowing jobs market, the low unemployment rate suggests otherwise.

Non-Farm Payrolls, ADP Payrolls Fall

According to the Bureau of Labor Statistics, non-farm payrolls added 151,000 jobs in January as compared to expectations of 180,000 jobs added and December’s reading of 262,000 jobs added in December. Analysts said that January’s reading is further evidence that a long-running decline in new jobless claims has ended.

ADP payrolls were also lower in January with 205,000 new jobs posted as compared to December’s reading of 267,000 private sector jobs added. Holiday hiring likely impacted higher readings in December, but time will tell if declining job growth is trending.

What’s Ahead

Next week’s economic reports include data on job openings, consumer sentiment and Fed Chair Janet Yellen’s Congressional testimony. Take advantage of lower interest rates and call Nosari Home Mortgage today at 870.425.8351 or get started with our online form here!

Spread the love

Filed Under: Market Outlook Tagged With: Federal Reserve, Freddie Mac, Market Outlook

Chris Nosari


Nosari Home Mortgage
APPLY NOW  
Click to Download Our App  
Visit Our Main Site  

Sign Up For Our Free Newsletter

Connect with Us!

Get A Free Rate Quote!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

  • Is It Best To Put Down A Large Down Payment, Or Be Agile With Your Savings?
  • The Top Smart Home Products You Should Know About
  • What Fees Are Involved With a Reverse Mortgage? Let’s Take a Look
  • Use A Fixer-Upper Mortgage To Expand Your Options
Nosari Home Mortgage
1001 Hwy 62 E
Mountain Home, AR 72653
Phone: 870-425-8351
Fax: 870-425-8353
NMLS: AR #136034 | MO Lic #2358
Equal Housing Lender

Looking For Something?

Categories

Copyright © 2022 · Powered by MySMARTblog