Jobless Claims Archives - Page 58 of 68

Last week’s economic reports included construction spending, personal income, and multiple reports on employment. Freddie Mac’s mortgage rates survey and new jobless claims were also released.

Construction Spending Dips in June

According to the Commerce Department, construction spending fell in June to -0.60 percent as compared to expectations of an increase of 0.50 percent and May’s reading of -0.10 percent. Spending was even across public and private construction spending. The Commerce Department said that construction spending on June rose to $1.13 trillion was 0.30 percent year-over-year and was 6.20 percent higher for the first six months of 2016 as compared to the same period in 2015; construction spending appears to be trending upward in spite of recent month-to-month declines.

Consumer spending rates in June met expected growth of 0.40 percent and matched May’s reading. Core consumer spending fell to 0.10 percent in June according to expectations, which were based on May’s reading of 0.20 percent.

Labor Reports Indicate Stronger Economy

Inflation remains lower than the Federal Reserve’s annual rate of 2.00 percent, but labor news released last week supports reports of strengthening economic conditions. ADP Payrolls, which covers private-sector job growth, reported 179,000 jobs added in July as compared to June’s reading of 176,000 jobs added.

Non-farm payrolls grew by 255,000 jobs as compared to expected growth of 185,000 jobs. Neither July’s reading nor did expectations of 185,000 jobs added meet June’s reading of 292,000 jobs added, but analysts and media reports touted private and public sector job growth as a strong indicator of economic recovery.

The national unemployment rate held steady at 4.90 percent against expectations of 4.80 percent and June’s reading of 4.90 percent. Analysts said that this reading was better than it appeared due to more people joining the work force in July.

Mortgage Rates Lower:Jobless Claims Rise

Mortgage rates fell across the board last week according to Freddie Mac. 30-year fixed rates averaged 3.43 percent, which was five basis points lower than the previous week. Average rates for a 15-year fixed-rate mortgage fell by four basis points to an average of 2.74 percent. The average rate for a 5/1 adjustable rate mortgage fell five basis points to 2.73 percent.

New jobless claims rose to 269,000 against expectations of 263,000 new claims and the prior week’s reading of 266,000 new claims. There’s good news; new jobless claims remained below the key reading of 300,000 for the 74^th consecutive week.

What‘s Ahead

This week’s scheduled economic news includes releases on retail sales and consumer sentiment along with weekly reports on new jobless claims and mortgage rates.

Whats Ahead For Mortgage Rates This Week January 04 2016 Last week’s economic news included reports on inflation, retail sales and weekly readings on mortgage rates and weekly jobless claims.

Mortgage rates were mixed with average rate for a 30-year fixed rate mortgage rising by one basis point to 3.42 percent. The average rate for a 15-year mortgage dropped by two basis points to 2.72 percent, and the average rate for a 5/1 adjustable rate mortgage rose six basis points to 2.76 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 5/1 adjustable rate mortgages and 0.40 percent for 15 year fixed rate mortgages. Freddie Mac said that recent patterns in mortgage rates suggested that rates are likely to remain low throughout the summer; last year the average rate for a 30-year fixed rate mortgage was 4.09 percent.

Inflation Grows at Steady Rate

Inflation grew by 0.20 percent in June according to the Consumer Price Index issued by the government. Rent, gas and pharmaceuticals drove the increase, while grocery prices declined. The Core Consumer Price Index, which excludes volatile food and energy sectors, also grew by 0.200 percent; this reflects lower grocery prices and relatively low fuel costs.

Increasing rents could propel more renters into the home buying market, but high home prices and short supplies of available homes continue to limit home buyer choices. Inflation remains below the Federal Reserve’s target of 2.00 percent annually; this indicates that the Fed isn’t likely to raise its target federal fund rates in the near future.

Home and Garden Sales Drive June Retail Sales

Homeowners were busy with home improvements and yard work in June; this boosted retail sales to 0.50 percent against an expected reading of 0.10 percent and May’s reading of 0.20 percent. June retail sales excluding automotive sales rose from May’s reading of 0.40 percent to 0.70 percent; analysts had expected retail sales exclusive of autos to grow by 0.50 percent in June.

New Jobless Claims Hold Steady, Consumer Sentiment Dips

Weekly jobless claims were unchanged at 254,000 new claims filed; analysts had expected new claims to increase to 265,000 new claims. A wave of new claims created by end-of-school-year layoffs caused new claims to jump in recent weeks, but analysts said that layoffs remain low. New jobless claims remained well below the benchmark of 300,000 for the 71^st consecutive week. This extended the longest time that new jobless claims were below 300,000 since 1973.

What’s Ahead

This week’s scheduled economic news includes the NAHB Housing Market Index, Existing Home Sales, Housing Starts and Building Permits. Weekly readings on mortgage rates and new jobless claims will also be released.

What’s Ahead For Mortgage Rates This Week – August 8, 2016

What’s Ahead For Mortgage Rates This Week – July 18, 2016

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