As we settle into the new year, mortgage rates continue to move sideways after seeing significant improvement between late October and mid-December. Also, the 30-year fixed rate is only slightly higher, by .14 percent higher than this time a year ago, according to Freddie Mac’s survey of average mortgage rates.
Friday, the latest Jobs Report was released, revealing robust job growth. The number of new jobs created came in at 216,000, a much higher number than the 164,000 expected. The unemployment rate remained steady at 3.7 percent, while wage inflation came in a touch hotter than expected. Overall, the jobs report didn’t surprise analysts, and there was little reaction in the bond market.
As for housing news last week, reports are showing that home price growth remains resilient. The latest CoreLogic report found the single-family home price gains reached 5.2 percent, the strongest annual growth rate since last January 2023.
We’re also starting to see the improvement in mortgage rates filter down into the data. Redfin reported that the median mortgage payment has dropped by $372 per month, not an insignificant sum. They also reported home buyer demand starting to pick up by 10% in the latest results.
Fannie Mae released a report showing increased optimism by consumers when surveyed about their outlook on home purchasing. The latest Home Purchase Sentiment Index revealed that 31 percent of consumers expect mortgage rates to continue to decline and home purchase conditions to improve. I suspect this kind of optimism will have buyers coming back into the home market in the coming months.
If you are anticipating a home purchase this year or even considering a refinance, reach out to me, and let’s discuss your scenario and timing so we can help you achieve your goals. You’re always welcome to reply to send me an email or call/text me to set up a time to talk.
This week, there are only two major economic reports that could have an impact on mortgage rates. The first is the CPI (Consumer Price Index) report on consumer inflation. Overall prices are expected to also rise 0.2 percent after increasing 0.1 percent in November. Annual rates, at 3.1 percent overall, are expected at 3.2 percent. Any surprises here could push mortgage rates higher.
On Friday, we get a look at wholesale inflation levels. Producer prices in December are expected to rise 0.2 percent on the month versus no change in November. The annual rate in December is seen at 1.3 percent versus November’s 0.9 percent increase.
