Mortgage rates were unchanged according to Freddie Mac. Weak NFP numbers for August will likely continue to peg rates back in the week ahead, with stats on the lighter side.
Mortgage rates were unchanged, with 30-year fixed rates holding steady after having risen for just the 3rd time in 9-weeks in the week prior.
In the week ending 2nd September, 30-year fixed rates remained unchanged at 2.87%. Mortgage rates had risen by 1 basis point in the week prior.
30-year mortgage rates have risen just once beyond the 3% mark Since 21st April.
Compared to this time last year, 30-year fixed rates were down by 6 basis points.
30-year fixed rates were still down by 207 basis points since November 2018’s last peak of 4.94%.
It was a relatively busy first half of the week on the U.S economic calendar.
Consumer confidence, manufacturing PMIs, and ADP nonfarm employment change were in focus.
The stats were skewed to the negative, with consumer confidence taking a hit in August.
Manufacturing sector activity picked up slightly in August, however, with the ISM Manufacturing PMI up from 59.5 to 59.9.
While the ISM figure was market positive, labor market data disappointed ahead of the all-important NFP numbers on Friday.
According to the ADP, nonfarm employment increased by 374k in August, falling short of a forecasted 613k jump.
From China, economic data was also skewed to the negative, raising red flags over the pace of the economic recovery.
According to the market’s preferred Markit survey, China’s Caixin Manufacturing PMI fell from 50.3 to 49.2.
The weekly average rates for new mortgages as of 2nd September were quoted by Freddie Mac to be:
According to Freddie Mac,
For the week ending 27th August, the rates were:
Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, decreased by 2.4% in the week ending 27th August. In the previous week, the index had increased by 1.6%.
The Refinance Index decreased by 4% and was 2% higher than the same week a year ago. The Index had increased by 10% in the previous week.
In the week ending 27th August, the refinance share of mortgage activity fell from 67.3% to 66.8%. The share had remained unchanged at 67.3% in the week prior.
According to the MBA,
It’s a quieter week ahead on the economic data front, with the U.S markets closed for Labor Day on Monday.
Economic data in the 1st half of the week is limited to JOLT’s job openings. Following last week’s nonfarm payroll figures and a lack of stats, yields could peg mortgage rates back in the week.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.