Mortgage Rates edged lower in latest week, Unemployment low, Manufacturing Activity Surged up in May in Philadelphia
May 18, 2017
Mortgage rates edged lower in the latest week and remain just above all-time lows. Freddie Mac reported that the 30-year fixed mortgage rate declined to 4.02% from 4.05% in the latest week with 0.5 in points and fees. Mortgage rates continue to remain low, due to low inflation and the political turmoil out of Washington D.C., which pushed Bond prices higher and rates lower. In addition, the U.S. Federal Reserve continues to purchase Mortgage Backed Securities in the open markets, which has a lowering effect on mortgage rates.
Americans filing for first-time unemployment benefits continue to hover near lows not seen since the early 1970s as the labor market continues to strengthen. Weekly Initial Jobless Claims fell by 4,000 to 232,000, below the 240,000 expected. Jobless claims have now remained below the 300,000 level for the longest stretch since 1970. Continuing claims declined 22,000 to 1.90 million in the week ended May 6, the lowest level since November 1988.
Manufacturing activity in the Philadelphia region surged in May signaling that the sector continues to expand. The Philadelphia Fed Index increased from a reading of 22.0 in April to 38.8 this month. The index has been positive for 10 consecutive months. Within the report it showed that current new orders and shipments indexes remained at high readings. In addition, firms reported an increase in manufacturing employment this month.
