Mortgage interest rates bounced back on Friday, following the release of a good but not spectacular Employment Situation Report for April. As we reported on Friday, U.S. non-farm employers added 223,000 jobs last month, and the unemployment rate shifted down to 5.4% from the previous 5.5%. The current jobs figure is roughly in line with economists’ expectations (a gain of 224,000).
As we mentioned above, mortgage interest rates struck back in the latter part of the week, but the gains haven’t been enough to be able to recover all the losses they experienced earlier in the week. The most important set of economic reports in the upcoming week’s news calendar, that can influence U.S. mortgage rates, includes March’s JOLTS report, April’s retail sales data, April’s producer price index and the Fed’s report on industrial production.
On Tuesday, The Labor Department is going to publish March’s JOLTS report, a short for the Job Openings and Labor Turnover survey. The report will show if more workers are voluntarily leaving their jobs in hope to find find another one. If the report turns out positive, it will signal that workers have more confidence in the job market. The most recent JOLTS report from February, showed job openings at a 14-year high, indicating an improvement in the job market, so March’s figure is one to watch for.
The Commerce Department will release April’s retail sales data on Wednesday morning, which will give us clues whether U.S. consumers boosted their spending last month. Retail sales ticked up 0.9% in March compared to February’s data, which was broadly in line with economists’ forecasts. For April, the consensus expectation is a 0.5% growth.
We will get some more domestic economic data in the form of April’s producer price index (PPI) on Thursday. Overall, the producer price index shows the prices that businesses receive for their goods and services. Last month, the Labor Department said that March’s producer price index rose a seasonally adjusted 0.2%, which marks the first increase after four straight month of declines. The consensus expectation is a 0.1% growth for the producer price index, and the same figure for the core PPI, which excludes the volatile food and energy categories.
In March, U.S. industrial production experienced the biggest drop in almost six years. The Federal Reserve reported that industrial production dipped 0.6% last month, suggesting that the U.S. economy is going through a tough stretch. On Friday morning, the Fed will publish April’s industrial production report and the median forecast for April’s data is an increase of 0.3%.
Switching to Freddie Mac’s latest published mortgage interest rate survey, the organization said on Thursday, that the 30-year fixed mortgage averaged a rate of 3.80% this week, an increase of 12 basis points compared to the prior week’s data. The shorter-term, 15-year fixed mortgage came in at 3.02%, a higher rate compared to the previous 2.94% that it had a week earlier.
With regards to current mortgage rates at U.S. lenders this weekend, at Bank of America (NYSE:BAC) the 30-year fixed home purchase loan is coming out at a rate of 3.625%. Those looking to secure the 15-year conventional home loan, which features a fixed rate during the loan’s term, can expect to pay 2.750% interest cost.
BofA’s home refinance loan portfolio includes the standard 30-year fixed mortgage loan, which is available today at a rate of 3.875%. The bank’s shorter, 15-year fixed refi mortgage loan stands at 2.875%.
Heading over to Chase (NYSE:JPM), among conventional home loans borrowers can find the long-term 30-year FRM, which currently carries 3.750% interest cost. Mortgage shoppers, who lean toward the 15-year fixed home loan, will see it being offered at a rate of 3.000%.
Under the lender’s home refinance loan program, the 30-year refi mortgage can be locked in at a rate of 4.000%. A shorter-term alternative, the 15-year FRM, is set at 3.125%, according to our observations.
The above mentioned interest rates are subject to change and are not guaranteed. In order to search for live mortgage rate quotes from some of the top U.S. lenders, please click on the link below. To calculate your monthly mortgage payment, feel free to use our featured mortgage calculator.