Home borrowing Costs Rise/1st Time Claims Rise

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

Home borrowing costs inched higher this week and remain just above historic lows. Freddie Mac reports that the 30-year fixed-rate mortgage rose four basis points to 3.09% 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, “Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages. Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the year.”

First-time unemployment claims fell to lows not seen since before the shutdowns began in late March 2020. At present, there are almost 11 million jobs available across the nation. The Labor Department reports that Weekly Initial Jobless Claims fell 3,000 to 290,000 for the week ended October 16, 2021. Continuing claims, or those receiving benefits for at least two weeks straight, fell to 2.481 million from 2.603 million. The labor market should continue to improve with holiday hiring underway.

The National Association of Realtors reports that Existing Home sales rose 7% in September from August to an annual rate of 6.290 million units, above the 6.05 million expected. Sales were down 2.3% from a year ago. Across the nation, sales were up in the Northeast, South, Midwest and West. Existing Home Sales measures single-family homes, townhomes, condominiums and co-ops. Inventories were down 0.8% from August and down 13.0% from one year ago. Unsold inventory sits at a 2.4-month supply where 6 months is seen as normal. The median existing-home price for all housing types in September was $352,800, up 13.3% from September 2020 ($311,500).

 

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