Like a gift that shows up just in time, mortgage rates showed improvement for the third week in a row, offering the gift of greater opportunity and affordability for home buyers venturing out for this year’s peak home-buying season. According to Freddie Mac’s latest survey of average rates, the 30-year fixed rate improved by .10 since the last survey, and the 15-year improved by .12 percent.
If you’re considering a purchase this year, let’s talk and come up with a plan to get you the best deal possible on your financing. You can simply reply to this email or call/text me at 818.307.6072 to set up a time to talk.
Showing the ramp-up of the spring buying season, the Mortgage Bankers Association is reporting a fourth straight weekly increase in mortgage applications. Economic uncertainty is helping rates improve, however with the rise in interested borrowers, inventory levels will continue to be a challenge for buyers.
Realtor.com is reporting that the six-month surge in active listings continued but is moderating with listings up 59.9 percent year over year. Time on the market is retreating, down to 54 days from January’s high of 74 days as buyers continue to venture back into the market.
As for what I’m watching this week, there’s not much economic data of interest to mortgage bond traders until the job reports start coming out mid-week and culminate with Friday’s Jobs Report released by the government.
On Wednesday we get a look at ADP’s report on private sector job creation. Forecasters see ADP’s March new jobs number at 200,000. This would compare with the February growth in private payrolls reported by the Bureau of Labor Statistics of 265,000.
Then on Friday morning, we get a look at the government’s monthly Jobs Report, the most anticipated economic report each month.
A 240,000 rise is the prediction for new job growth in March versus 311,000 in February which, for the fifth month in a row, was at the top of the consensus range. February, in fact, was the tenth straight month and twelfth of the last thirteen that payroll growth exceeded economists’ expectations.
Of concern is the persistent wage inflation. Average hourly earnings in March are expected to rise 0.3 percent on the month for a year-over-year rate of 4.3 percent; these would compare with 0.2 and 4.6 percent in February. March’s unemployment rate is expected to hold unchanged at 3.6 percent.
