Linda Culotta

Market Rate Mortgages

  • Home
  • About
    • About
    • My Podcast Episodes
  • Resources
    • Market Rate Mortgages, LLC NMLS#213838 – Market Update
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Programs
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
  • Calculator
  • Reviews
    • Leave a Review
    • Reviews
    • Zillow Reviews
    • Additional Reviews
  • Apply Now
  • Blog
  • Contact Me

What’s Ahead For Mortgage Rates This Week – February 8, 2021

February 8, 2021 by Linda Culotta

What's Ahead For Mortgage Rates This Week - February 8, 2021Last week’s economic news included Commerce Department readings on construction spending, labor sector reporting on public and private-sector job growth, and the national unemployment rate. Weekly reports on mortgage rates and jobless claims were also released.

Construction Spending Driven by Housing Sector in December

The Commerce Department reported a one percent gain in construction spending in December to a seasonally-adjusted annual pace of $1.49 trillion. Residential construction drove spending for the seventh consecutive month with a 3.10 percent gain in spending. Construction for public projects rose by 0.50 percent; private-sector spending on non-residential construction fell by -1.70 percent.

Demand for housing remained high as supplies of previously-owned homes ran below average and homebuyers turned to new housing developments. Flight to less congested metro areas continued to drive demand for single-family homes. Builders cited rising materials costs and land and labor shortages as ongoing challenges to building affordable homes.

Mortgage Rates Hold Steady as Job Growth Improves

Freddie Mac reported little change in average mortgage rates last week. The average rate for 30-year fixed-rate mortgages was unchanged at 2.73 percent. Rates for 15-year fixed-rate mortgages averaged 2.21 percent and one basis point higher. The average rate for 5/1 adjustable rate mortgages was two basis points lower at 2.78 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages and 0.60 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.30 percent.

Public and private-sector job growth improved in January. ADP reported 174,000 private-sector jobs as compared to a negative reading of -78,000 jobs in December. Analysts forecasted 48,000 private-sector jobs added in January.

The federal government’s Non-Farm Payrolls report showed 49,000 public and private-sector jobs added, which fell short of the expected 50,000 jobs added, but the job growth reading was good news when compared to December’s reading of -227,000 jobs lost.  In related news, the national unemployment rate fell to 6.30 percent as compared to December’s reading of 6.70 percent 

Fewer Jobless Claims Filed

779,000 initial jobless claims were filed last week as compared to the prior week’s reading of 812,000 first-time claims filed. Continuing jobless claims also fell with 4.59 million ongoing claims reported; 4.79 million continuing claims were filed during the prior week.

What’s Ahead

This week’s scheduled economic reporting includes readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be released

Linda Culotta

Filed Under: Financial Reports Tagged With: Financial Report, Jobless Claims, Mortgage Rates

Linda Culotta

Linda Culotta

Broker/Owner - Loan Officer
Market Rate Mortgages, powered by Fidelity Direct Mortgage
Call (239) 398-3978
linda.culotta@fdmhome.com
NMLS# 213838
Licensed to work in: Florida (LO67655)
Get a Rate Quote →

Click to Download My App!
Linda Culotta

Connect with Me

How can I help?

  • This field is for validation purposes and should be left unchanged.

Browse articles by category

Archives

Quick Links

  • About
  • Accessibility Statement
  • Privacy Policy
  • Contact Us
NMLS# 213838
Licensed to work in: Florida (LO67655)

Equal Housing Lender

Our Location


Naples, Florida 34114

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in