Summary: Mortgage rates have been declining over the past few months, now hovering near historic lows. The question is, where will mortgage interest rates go from here? Last Updated:
Last week’s economic news included data on weekly mortgage rate changes, data on the health of the labor market, and state-specific data on average mortgage rate changes. We will continue to return to these and other key areas which affect potential home buyers.
Mortgage Rates Show Positive Changes Across Loan Types
At the national level, Freddie Mac reported consistently positive activity in terms of interest rate changes last week. Rates for 30-year fixed rate mortgages declined by 0.8 basis points to an average of 3.57 percent. Rates for 15-year fixed rate mortgages averaged 3.05 percent and were 0.9 basis points lower.
The average rate for 5/1 adjustable rate mortgages was 3.35 percent, which represents a decline of 0.3 basis points. Discount points averaged 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for 15-year fixed rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.
Labor Market Shows Strength; Unemployment Collection Remains Very Low
The Freddie Mac forecast also provides remarks on the current state of the labor market. The national unemployment rate is expected to at 3.7% for both the third and fourth quarters of 2019. The full year forecast for 2020 is 3.8%. Job creation has continued to extend its record of consecutive monthly growth, currently standing at 107 months.
Unemployment collection continues to be quite low. Presently, unemployment collection claims remain close to the lowest levels seen since the 1970s. Freddie Mac predicts that these and other indicators of labor market health will continue to improve as the economy continues to perform well.
Current Numbers for WA, OR, ID, and CO
In Washington State, mortgage rates increased from the week of 9/30/2019 in a total of 9 separate loan categories, and rates decreased in 4. Conforming loans and jumbo loans were hit hard. In Oregon, the situation was a bit better, with only 6 loan categories showing a weekly increase. Conforming loans in OR actually performed fairly well, with only 2 loan categories increasing and 3 showing decreases.
The State of Idaho showed a similar weekly performance, with 6 loan categories showing a weekly increase in average interest rate. Idaho jumbo loans were hit the hardest, with 3 loan products showing increases and none showing decreases. The State of Colorado showed the best situation in terms of weekly mortgage interest rate changes. Only 4 loan products in Colorado showed a weekly increase. Notably, every jumbo loan product in Colorado showed a decrease, except 3/1 ARM jumbo loans which remained the same.
This week’s scheduled economic news includes updates on national average mortgage rate changes, other labor market data and more state-specific mortgage rate news. We may also include information on refinancing origination trends and home sale trends as well.
Reach Out to Sammamish Mortgage
If you’d like to learn more about the home buying process, mortgage rates, mortgage programs, or other related topics, don’t hesitate to reach out to the professionals at Sammamish Mortgage today! Sammamish Mortgage is a family-owned mortgage company with over 25 years of experience delivering mortgage loans to customers in the Pacific Northwest at competitive interest rates. States include WA, OR, CO & ID. Contact us to learn more, you can also View Rates, get a Rate Quote, or Apply Now using our new online automated mortgage application system!