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CCL Market Update: Jobs, Retail Sales, Mortgage Rates, CCL 21-Day Processing

The Labor Department recently released their Job Openings and Labor Turnover Survey for the month of April, which boasted a number of positives. Job openings soared to a much higher-than-expected 5.376 million, the highest reading in the history of the JOLTS series, dating back to 2000. Year-on-year, job openings increased by 22%. The quits rate also showed improvement, down slightly to 1.9% from 2%.

Although they have risen recently, Initial jobless claims continued to post below 300K for the 14th consecutive week with 279K American’s filing for unemployment in the week of June 6, and the 4-week average rose for the third straight time to 287,750.

Retail Sales rose 1.2% in May, marking the third consecutive month of gains. May’s advance was broad based with gains across 11 of the 13 major categories led by auto dealers, clothing, and building material stores. A report from Wells Fargo notes,

“U.S. retail sales have been in the news, it seems, forever and not because sales are improving. Actually, retail sales have been disappointing month in and month out. However, the weakness continues to be located in the goods sector of the economy, while the service sector, that is, food services and drinking places, continues to boom.”

Food and beverage businesses are flourishing, with year-over-year growth of around 10%.


Mortgage Rates

Mortgage rates displayed significant increases this week, reaching 2015 highs. Most loan programs rose by approximately 1/8 percentage-point. The largest jump was seen in the 30-year FHA program, with an increase of 24.4 basis points. The 30-year fixed increased 12.5 basis points to a rate of 4.125% (4.165% APR), its highest rate since early November of last year.

Freddie Mac deputy chief economist, Len Kiefer, noted,

“Mortgage rates rose above 4 percent for the first time since November 2014 as Treasury yields surged. Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.”

Current market expectations of a rate hike are still low, as a June hike is expected with 3.7% probability, a September hike with 29% probability and an 83% probability for a rate hike to occur by December.

Visit our Mortgage Rate Update page for more rate information, updated weekly!


CCL’s 21-Day Loan Processing

Here at Central Coast Lending, we like consistency and reliability. That is why we work to process every loan within 21 days, no matter how long the closing period.

Our Process:

  • Consultation—You and your loan officer will assess credit-worthiness, discuss available financing options, and establish expectations.
  • Application—The goal of our application is the gather detailed information that will be necessary to determine your eligibility.
  • Documents—We need your help getting your documents to us as fast as possible. The documents will be used to verify the information you provided in the application and will include items such as pay stubs, W2s, tax returns, and bank statements.
  • Underwriting—We underwrite every loan at the beginning of the loan process. Our approach is unique, and gives you a major advantage in a competitive market…

Read the full article to learn more about the procedures and benefits of our 21-Day Loan Processing. Our process can help you make a stronger purchase offer, reduce stress, and save money! Give us a call at 805.543.LOAN to discuss your mortgage options and to get a free rate quote.

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile