Weekly Mortgage Rate Update-09-10-24
The August employment data confirmed concerns that the job market is in decline. This helped mortgage rates inch lower last week.
Starting with JOLTS (Job Openings and Labor Turnover Survey) that showed a continued decline in job openings, dropping another 6% in August. ADP Payrolls reporting its lowest hirings in 3 years with 99k jobs added vs. 149k expected.
Challenger job cuts also increased with companies reporting hiring plans now at the lowest on record, going back to when they started tracking this in 2005.
The week ended with the much-anticipated BLS employment data 142k jobs added, slightly lower than expectations. But as usual, the previous 2 months revised lower still by 89k jobs. Now the 3-month rolling average is 116k jobs per month.
This has been declining for a few months, now getting to a more concerning level. The bright spot? The unemployment rate ticked down to 4.2% vs. 4.3% last month, a smidge lower due to an increase in part time workers.
According to the household survey- August shows a loss of 438k full time jobs and a gain of 527k part time jobs.
Not to be overlooked the Fed Beige Book which reports the health of all 12 Fed districts showed 9 out of 12 districts with flat or declining growth. Last month only 5 out of the 12 districts showed slowing/flat growth.
This week we turn our attention back to inflation with the CPI reading on Wednesday. The last inflation reading before the Fed meets next week.
On the technical side the10 treasury was able to dip below that tough 3.80% level and hold the last few sessions. If tomorrow’s CPI reading shows the rate of inflation is still tracking lower, we have room to move a little lower before hitting another resistance level.
Check it out- back to the 5’s across the board.
|
Loan Type |
Conventional 30 year |
Conventional 15 year |
FHA 30 year |
VA 30 Year |
|
Interest rate |
5.875% |
5.375% |
5.25% |
5.25% |
|
APR |
6.027%* |
5.626%* |
6.272%** |
5.39%*** |
LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)
RATES ARE CURRENT AS OF 09-10-2024. SUBJECT TO BORROWER APPROVAL, FICO SCORE, LTV AND PROPERTY TYPE
*APR IS BASED ON ESTIMATED FINANCE CHARGES OF $6935
**APR IS BASED ON ESTIMATED FINANCE CHARGS OF $10,969 THIS INCLUDES FHA MORTGAGE INSURA
NCE PREMIUM
***APR BASED ON ESTIMATED FINANCE CHARGES OF $8343
FEES INCLUDE 1% POINTS, NO Loan Origination Fee , $1095 PROCESSING AND $0 UNDERWRITING FEE
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.