Mortgage Rates

Last week's economic reports included minutes of the Fed's Federal Open Market Committee meeting held in September along with releases on inflation and weekly reports on mortgage rates and new jobless claims. FOMC Meeting Minutes Indicate December Rate Hike is No Sure Thing According to minutes for the September 19 and 20 meeting of the Federal Reserve's Federal Open Market Committee, the Fed has adopted a wait-and-see posture concerning a possible rate hike at December's meeting. Although analysts previously indicated that additional rate hikes were expected by the end of 2017, the Fed chose not to raise the federal funds…

Fixed mortgage rates rose by two basis points last week as the average rate for a 5/1 adjustable rate mortgage dropped by two basis points.  Construction spending returned to positive territory, but job growth dropped in public and private sectors. National unemployment was lower. Construction Spending Rises in August Builders increased construction spending in August after July's reading dipped lower than June's reading. Construction spending rose by 0.50 percent in August, which exceeded expectations of a 0.40 percent increase and July's reading of -1.20 percent. Higher construction spending in August was driven by higher spending on public sector building projects.…

Last week's economic news included readings on housing starts, building permits issued and sales of pre-owned homes. The Fed's Federal Open Market Committee issued its customary post-meeting statement and Fed Chair Janet Yellen gave a press conference. Weekly readings on mortgage rates and new jobless claims were also released. Housing Starts Lower, but Building Permits Increase August saw fewer housing starts with 1.18 million starts on a seasonally-adjusted annual basis. July's reading was upwardly adjusted to 1.19 million starts; analysts expected 1.175 million starts annually in August. Building permits rose in August, which suggested builder confidence was strong regardless of…