Mortgage Rates Remain at Record Lows - 8/7/20
- Freddie Mac’s weekly average interest rate on 30-yr., fixed-rate mortgages hit its lowest level in the survey’s 49-year history. This is the 8th time this year for record lows.
- The ISM manufacturing index increased to 54.2 in July, indicating manufacturing expansion for the 3rd consecutive month after the spring’s steep collapse.
- Initial jobless claims fell more than expected last week to the lowest since the pandemic started. The broad decline across nearly all states suggests labor market improvement.
- Home prices increased 4.9% in June, even higher than May’s 4.1% annual increase, according to CoreLogic. Prices climbed 1.0%, the fastest monthly gain for June since 2013.
- Despite rising prices, home affordability was the best level in 4 years, requiring only 19.8% of the median monthly income to make the mortgage payment on an average priced home.
- Construction spending fell for the 4th straight month in June. However, even after the declines, spending at the end of June was 5% higher than it was through the first 6 months of 2019.