Slow Job Growth Pushes Mortgage Rates Lower
Tuesday, October 29, 2013 • 1:31pm
September’s employment report, released last week, revealed fewer-than-expected new jobs. Mortgage rates responded as expected and moved downward on the news. The 30-year fixed rate fell 0.15% to an average rate of 4.13%, the lowest in the past 19 weeks (borrowers should expect to pay 0.8 points for that rate).
We will see more data than usual this week. Reports include Industrial Production, Retail Sales, Consumer Price Index and the ISM Manufacturing Index. Additionally, the Fed meets this week and will attempt to assess the economic situation following the shutdown. Experts estimate that the Government shutdown may have trimmed a half a percentage point from GDP. The FOMC Policy Announcement is scheduled for Wednesday. If the Fed hints that the economy is again losing steam, we could see mortgage rates trend even lower.
This column takes a look at current mortgage rates, market trends and indexes. Jon Lamkin is Vice President of Mortgage Lending for Guaranteed Rate, 322 Route 46 W Suite 170 • Parsippany, NJ • 07054. He may be reached at 973.939.8661 / firstname.lastname@example.org / www.guaranteedrate.com/jonlamkin
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