Mortgage rates were essentially unchanged this week as they hover near the same levels for the past three weeks. Freddie Mac reports that the 30-year fixed-rate mortgage is at 4.52% for the week ended today with an average 0.5 in points and fees. Freddie Mac says that while sales and price growth have softened these last few months, this leveling of rates may be helping more buyers reach the market. Last year this time the rate was 3.82%.
In economic news, the Fed's favorite inflation gauge, the annual Core PCE, ticked up to the Fed's target range of 2% in July from 1.9% in June. Month over month, Core PCE rose 0.2%, in line with estimates. Personal Incomes and Spending came in near expectations while Weekly Initial Jobless Claims hover near lows seen in 1969. Inflation seems to be under control but that won't stop the Fed from raising rates next month. Fed Fund Futures are pricing in an almost 100% chance of a hike to the Fed Funds Rate at the September 25-26 Federal Open Market Committee meeting.
Americans filing for first-time unemployment benefits continue to hover near lows seen back in 1969, when the labor market was smaller. Weekly Initial Jobless Claims rose 3,000 in the latest week to 213,000 while the job market continues to tighten. It is said that there are more jobs available than there are people to fill those positions. The Bureau of Labor Statistics reported this week that unemployment rates were lower in July than a year earlier in 323 of the 388 metropolitan areas, higher in 41 areas, and unchanged in 24 areas. Next week, Friday, September 7, the monthly Jobs Report will be released for August.
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