Weekly Economic Review: Mortgage Rates Drop to Lowest Level in Three Years

Posted by Laine Smith on 5/13/16 1:20 PM

Topics: Economy

The biggest news this week was the decline of mortgage rates. According to data released Thursday by the Federal Home Loan Mortgage Corporation, the 30-year fixed mortgage rate fell to lows not seen since 2013.

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Following last week’s employment report, the Labor Market Conditions Index confirmed the job market’s soft growth in April. The index fell 0.9 points in April, which is the fourth straight month of declines.

Last week in the economy:

  • The purchase sector of MBA Mortgage Applications saw an increase of 0.4 percent in the May 6 week following the decline of mortgage rates. Refinancing was up 0.5 percent from the previous week.
  • Initial Jobless Claims jumped for a second week in a row, up 20,000 in the May 7 week following a 17,000 increase the week prior. This jumped the 4-week average up a sharp 10,250 to 268,250 level.
  • Following last week’s employment reports which indicated a soft April for the job market, the Labor Market Conditions Index fell for the 4th straight month. The index fell 0.9 in April.
  • The Job Opportunities and Labor Turnover Survey (JOLTS) was positive for the month of March. Job openings jumped to 5.757 million from February’s upwardly revised 5.608 million. This increased the job openings rate by 1-tenth to 3.9 percent.
  • Consumer Comfort was down again in the May 8 week, dropping 3-tenths to a level of 41.7.

What’s on economic calendar for the week of May 16, 2016:

  • Monday – Housing Market Index
  • Tuesday – Consumer Price Index and Housing Starts
  • Wednesday – MBA Mortgage Applications and FOMC Minutes
  • Thursday – Jobless Claims and Bloomberg Consumer Comfort Index
  • Friday – Existing Home Sales

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