Following an increase after the Fed's announcement of a looming December rate hike, mortgage rates cooled this week. Shortfalls in retail sales and weak economic data in Europe helped slow the rising rate trend.
Image courtesy of ddpavumba at FreeDigitalPhotos.net
The Job Openings and Labor Turnover Survey showed positivity for labor demand, increasing to 5.526 million from a revised 5.377 million in August. The quit rate for September remained stubbornly low for a sixth consecutive month at 1.9 percent, which is a contrasting indication of worker hesitance.
After a strong summer in retail spending, sales gains slowed in October with a small increase of 0.1 percent. Disregarding vehicle and gas station sales, retail activity increased a respectable 0.3 percent for the month. Indications of strength in the labor market could point to gains in the coming months for overall retail sales.
Last week in the economy:
- Mortgage rates (the national average) fell 0.02% (2 basis points).
- MBA Mortgage Applications settled for a second straight week after volatile jumps following the enactment of new lending disclosure rules. The purchase index increased 0.1% and the refinance index fell 0.2%.
- Initial Jobless Claims remained unchanged for a second week at 276,000 which is the highest level run in two months.
- Consumer Sentiment increased drastically this month to 93.1 in the highest reading since July.
What's on the economic calendar for the week of November 16, 2015:
Tuesday: Consumer Price Index
Wednesday: MBA Mortgage Applications, Housing Starts & FOMC Minutes
Thursday: Jobless Claims & Bloomberg Consumer Comfort Index
To receive more information about the economy, mortgage rates and housing market, sign up for our weekly economic updates.