Summary: Mortgage rates held steady this past week as a result of some level of uncertainty of the economy. In this article, we’ll look at what mortgage rates have done this week, and how that may affect your homebuying decisions.
Last week’s economic reports included readings on construction spending and multiple labor sector reports including private and public sector jobs and the national unemployment rate. Weekly reports on average mortgage rates and first-time jobless claims were also released.
Construction Spending Falls 0.80 Percent in October
Commerce Department reports on construction spending said that spending fell by 0.80 percent to a seasonally-adjusted annual rate of $1.29 million. Analysts expected construction spending to increase by 0.40 percent based on September’s original reading of 0.50 percent growth, which was later revised to -0.30 percent.
Less construction of multifamily homes and apartments caused a decrease in October construction spending. Private construction spending fell by -1.00 percent in October; residential construction fell 0.90 percent as multi-family construction spending fell 1.60 percent after a 2.10 percent dip in September. Construction spending on single-family homes increased by 1.60 percent.
Low mortgage rates, a strong job market, and rising wages contributed to a strong demand for homes. Short inventories of available homes continued to pressure home builders to build more homes; construction of homes jumped 3.80 percent in October.
Mortgage Rates, Mixed, New Jobless Claims Fall
Freddie Mac reported no change in the average rate of 3.68 percent for 30-year fixed-rate mortgages; rates for 15-year fixed-rate mortgages averaged 3.14 percent and were one basis point lower than for the prior week.
Rates for 5/1 adjustable-rate mortgages fell four basis points on average to 3.39 percent. Discount points averaged 0.50 percent for 30-year fixed-rate mortgages and 0.40 percent for 15-year fixed-rate mortgages and 5/1 adjustable-rate mortgages.
First-time jobless claims fell from the prior week’s reading of 213,000 claims to 203,000 claims filed last week. ADP reported 67,000 private-sector jobs added in November.
The federal government’s Non-Farm Payrolls report offset the dismal reading for private-sector job growth. 266,000 public and private sector jobs were added in November and surpassed expectations of 180,000 public and private sector jobs added.
Approximately 55,000 were accounted for as auto workers returned after a strike. 156,0000 public and private sector jobs were added in October. The national unemployment rate dropped to 3.50 percent in November and matched the reading for unemployment posted at the end of 1969.
Current Numbers for WA, OR, ID, and CO
Washington State mortgage rates hit 3.77% and 3.57% for conforming 30-year mortgages and 5/1 ARMs, and for jumbo loans, the numbers in the state are 3.82% and 3.35% for 30-year mortgages and 5/1 ARMs, respectively. In Oregon, conforming loan rates are 3.71% for 30-year mortgages and 3.69% for 5/1 ARMs. For jumbo loans, the numbers are 4.08% 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 3.68%, and 3.67% for 5/1 ARMs, while for jumbo loans, the numbers for each loan type are 3.88% and 3.24%, respectively. In Colorado, the rate for conforming loans for 30-year fixed-rate mortgages is 3.87%, and 3.74% 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 on inflation, retail sales and the post-meeting statement from the Federal Reserve’s Federal Open Market Committee. Fed Chair Jerome Powell is scheduled to give a press conference after the FOMC statement. Weekly readings on mortgage rates and new jobless claims will also be released.
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!