Weak Jobs Report Sends Mortgage Bonds Reeling!

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Home borrowing costs inched lower this week and remain just above historic lows. Freddie Mac reports that the 30-year fixed-rate mortgage fell two basis points to 2.99% with 0.7 in points and fees. The record low was 2.65% on January 7 of this year. Sam Khater, Freddie Mac’s Chief Economist said, “Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

First-time unemployment claims rose in the latest week as the sector continues to get back to full strength. At present, there are 11 million jobs available across the nation. The Labor Department reports that Weekly Initial Jobless Claims fell 38,000 to 326,000 for the week ended October 2, 2021. Continuing claims, or those receiving benefits for at least two weeks straight, fell to 2.714 million from 2.81 million. The labor market should continue to improve with holiday hiring underway.

 

Home borrowing costs remain low. Housing affordability declines. Weekly Initial Jobless Claims drop

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