Economic data has been generally positive over the last several weeks and mortgage rates have moved alongside the stock market, although after a busy Thursday (May 17) of statistics, we are reminded that the “recovery” isn’t always so uniform.
Unemployment claims jumped by 32,000 for the May 11 week. The upward movement came after consecutive weeks of drops to recovery low levels.
Groundbreakings on new housing construction dropped in 16.5% in April from March, although they were still up 13.1% from the previous year. While short-term growth may slow, permits for housing projects rose 14.3% monthly and 35.5% yearly. We may be in for a very strong summer construction season.
Inflation on both the consumer and producer levels stalled in April. This is a sign that the Federal Reserve’s policy of monetary easing is not having an immediate, outsized impact on US currency.
Mortgage rates are now in their second week of consistent upward movement, but despite the upward pressure they are still near record lows. For the future, we will point you to something that Central Coast Lending owner Jason Grote said for our May 13 rate update:
“I realize that this week, rates aren’t as low as they have been, but keep in mind that the 3-4% range of the 30-year fixed will be a thing of the past in 24 month,” said Grote. “We will miss them, and the people that took advantage will be the winners.”
To track mortgage rate movement throughout the week, check in with our CCL Rate Tracker, which publishes rates for 10 loan programs every Monday, Wednesday, and Friday.