What’s Ahead For Mortgage Rates This Week – July 11, 2022

What's Ahead For Mortgage Rates This Week - July 11, 2022

Last week’s scheduled economic news included reports on job growth. The Federal Reserve released the minutes of its most recent Federal Open Market Committee meeting. Weekly readings on mortgage rates and jobless claims were also released.

Job Growth Eases as Fears of Recession Rise

The Labor Department reported fewer job openings in May with 11.3 million jobs available as compared to April’s reading of 11.7 million job openings. Analysts predicted 11.1 job openings for May. The government’s Non-Farm Payrolls report showed slower job growth with 372,000 jobs added in June. Analysts expected 11.1 million jobs added as compared to May’s reading of 11.7 million jobs added.  Job quits were unchanged at 4.3 million quits reported in May. Although fewer job openings were posted in May, Job openings have exceeded 11 million vacancies for six consecutive months.

June’s national unemployment rate of 3.6 percent was unchanged from May’s reading.

Mortgage Rates Fall as Jobless Claims Rise

Mortgage rates fell for the second consecutive week; Rates for 30-year fixed-rate mortgages averaged 5.30 percent and 40 basis points lower. Rates for 15-year fixed-rate mortgages averaged 4.45 percent and 38 basis points lower. The average rate for 5/1 adjustable-rate mortgages was 31 basis points lower at 4.19 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims rose to 235,000 claims filed last week as compared to the prior week’s reading of 231,000 first-time claims filed. Analysts expected 230,000 initial jobless claims to be filed last week. 1.38 million continuing jobless claims were filed as compared to the prior week’s reading of 1.32 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic news includes multiple readings on inflation, retail sales, and the University of Michigan’s survey on consumer sentiment.