Mortgage Rates Remain Relatively Unchanged - 10/15/21
- Minutes from their last meeting show the Fed feels the economy is close to reaching their prescribed targets to begin tapering bond buying soon, pressuring rates higher.
- Consumer prices grew slightly more than expected in September, when food and energy increases offset declines in used car prices. Inflation can contribute to higher rates.
- Jobless claims fell last week to the lowest since March 2020, as employers hang onto their workers in the tight labor market. Continuing claims dropped to 2.6 million.
- Foreclosures are rising, but numbers should stay relatively low due to high levels of home equity and aggressive modifications by lenders.
- Purchase applications increased 2% for the week but were 10% lower than the same week one year ago. Refinance applications fell 1% for the week and were 16% lower year over year.
- A recent survey of agents shows rising prices are causing problems with appraisals. 23% of contracts were delayed and 12% then terminated due to appraisal issues, according to the survey.