Summary: Mortgage rates have been holding steady over the past few weeks, but they dipped to their lowest level in over 3 months this past week, as investors looked to hedge their funds in safe U.S. Treasury fixed income markets. With a drop in mortgage rates and the continued strong labor market, buyer demand is expected to increase. This article will go over where things stand in terms of mortgage rates today and where they are expected to go in the coming weeks.
Last week’s economic reports included readings on public and private sector jobs, the national unemployment rate and weekly readings on mortgage rates and new unemployment claims.
ADP: Private-Sector Job Growth Eases in December
Private-sector jobs increased by 202,000 jobs in December and exceeded expectations. November’s original reading of 60,000 new private-sector jobs was revised to 124,000 jobs.
Three and six-month average private-sector job growth rates were 159,000 and 151,000 jobs, but these growth rates fell short of 2018’s average monthly job growth rate of 218,000 jobs added.
Analysts said that private-sector job growth has settled into a more modest but steady pattern.
Non-Farm Payrolls: Public and Private-Sector Job Growth Slower in December
The Commerce Department reported 145,000 public and private-sector jobs added in December with 145,000 new jobs reported. Analysts expected 165,000 new jobs added, which was markedly less than 256,000 new jobs added in November.
Reduction in new jobs during December was likely due to slowing in holiday hiring and winter weather. Average hourly earnings for December rose by 0.10 percent and were lower than expectations of 0.30 percent growth. Slower wage growth contributed to predictions of slowing economic growth.
The national unemployment rate was unchanged at 3.50 percent in December.
Mortgage Rates, Weekly Jobless Claims Fall
Freddie Mac reported lower mortgage rates last week; the average rate for 30-year fixed-rate mortgages fell eight basis points to 3.64 percent. Rates for 15-year fixed-rate mortgages averaged nine basis points lower at 3.07 percent.
Rates for 5/1 adjustable rate mortgages averaged 13 basis points lower at 3.30 percent. Discount points for fixed-rate mortgages averaged 0.70 percent and 0.30 percent for 5/1 adjustable-rate mortgages.
Freddie Mac predicted that rates for 30-year fixed-rate mortgages will average 3.80 percent in 2020 as compared to 4.00 percent in 2019.
Weekly jobless claims fell to 214,000 new claims; analysts expected 219,000 new claims filed. 223,000 first-time claims were filed the prior week.
Current Numbers for WA, OR, ID, and CO
Washington State mortgage rates hit 3.72% and 3.66% for conforming 30-year mortgages and 5/1 ARMs, and for jumbo loans, the numbers in the state are 3.94% and 3.19% for 30-year mortgages and 5/1 ARMs, respectively. In Oregon, conforming loan rates are 3.69% for 30-year mortgages and 3.52% for 5/1 ARMs. For jumbo loans, the numbers are 3.99% for 30-year mortgages and 3.44% for 5/1 ARMs.
Mortgage rates in Idaho for conforming loans for 30-year fixed-rate mortgages is 3.66%, and 3.60% for 5/1 ARMs, while for jumbo loans, the numbers for each loan type are 4.08% and 3.33%, respectively. In Colorado, the rate for conforming loans for 30-year fixed-rate mortgages is 3.62%, and 3.46% for 5/1 ARMs. For jumbo loans, the numbers for each loan type are 3.84% and 3.12%.
This week’s scheduled economic reports include readings from the National Association of Home Builders on housing market conditions. Commerce Department readings on housing starts and inflation will also be released. The University of Michigan will post data on consumer sentiment; weekly reports on mortgage rates and new jobless claims will be posted as scheduled.
Looking to Apply For a 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!