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Mark Hemingway

Mortgage Market Update for May 9th

Friday, May 10, 2019 - Article by: Mark Hemingway - Security Financial Services, LLC - Message

Mortgage rates edged lower in the latest survey as investors piled into the bond markets due to uncertainty caused by the ongoing trade disputes. Freddie Mac reports that the 30-year fixed-rate mortgage fell by four basis points in the latest week to 4.10% with an average 0.5 in points and fees. Last year this time the rate was 4.55%. Freddie Mac says, "A combination of low mortgage rates, a strong job market and modest wage growth should spur homebuyer interest and also serve as an incentive for homeowners looking to refinance."

In economic news, tame numbers from the Producer Price Index reinforce the low inflation environment in what many don't see as "transitory," as uttered by Fed Chair Powell at his press conference last week. Inflation has been running low for quite some time and as the Fed tells us, will continue to be subdued for several years to come. This will keep home loan rates relatively low longer than most think.Weekly Initial Jobless Claims hovered near 50-year lows at 228,000 last week as the strong labor market helps to keep the US economy on a solid growth pace. The four-week moving average of claims, which irons out seasonal abnormalities, rose by 7,750 to 220,250. The solid labor market will help potential home buyers or those refinancing with low borrowing costs. Just recently, it was reported that the unemployment rate fell to a 50-year low while job openings across the US hover just below record highs.

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