Mortgage rates dip after a weak employment report
Mortgage rates retreated this week after weaker-than-expected employment data.
According to the latest data released Thursday by Freddie Mac, the 30-year fixedrate average slipped to 4.59 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.6 percent a week ago and 3.9 percent a year ago.
The 15-year fixed-rate average fell to 4.05 percent with an average 0.5 point. It was 4.08 percent a week ago and 3.90 percent a year ago. The five-year adjustable rate average dropped to 3.9 percent with an average 0.3 point. It was 3.93 percent a week ago and 3.14 percent a year ago.
The U.S. economy added 157,000 jobs in July, which was slightly below the expectations of many economists. A slowing job rate can indicate the economy is ebbing. That concern was enough to push mortgage rates down a bit.
“Mortgage rates fell slightly after an unexpectedly weak July jobs report, but are still above where they stood a month ago,” said Aaron Terrazas, senior economist at Zillow. “This week should be fairly quiet in bond markets, except potentially for Friday’s release of inflation data. A strong inflation report could put upward pressure on rates.”
Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half the experts it surveyed say rates will remain relatively stable in the coming week. Jim Sahnger, mortgage planner at C2 Financial, is one who predicts rates will hold steady.
“Following weaker-than-expected employment numbers and no movement from the Fed last week, we have been somewhat range-bound and look to continue until we have something to move us higher or lower,” Sahneger said.
“This week’s inflation numbers could be the trigger, but we’ll have to see.”
Meanwhile, mortgage applications were down, according to the latest data from the Mortgage Bankers Association. The market composite index - a measure of total loan application volume decreased 3 percent from a week earlier. The refinance index fell 5 percent, while the purchase index dropped 2 percent.
The refinance share of mortgage activity accounted for 36.6 percent of all applications.
“Despite recent data indicating a strong U.S. economy and job market, including signs of wage growth, overall mortgage applications fell for the third straight week as housing continues to be hampered by the lack of homes for sale and crimped affordability,” said Joel Kan, an MBA economist. “The Market Index, which measures both purchase and refinance applications, was decreased to its lowest level since January 2016. Both purchase and refinance indexes decreased as well this week, with the refinance index staying close to its lowest level since December 2000.”
The MBA also released its mortgage credit availability index (MCAI) this week that showed credit availability increased in July. The MCAI rose 1.7 percent to 184.1 last month. An increase in the MCAI indicates that lending standards are loosening, while a decline signals that they are tightening.
“Credit availability continued to expand, driven by an increase in conventional credit supply,” Kan said.
“More than half of the programs added were for jumbo loans, pushing the jumbo index to its fourth straight increase, and to its highest level since we started collecting these data.
Sinclair Broadcast Group Inc. saw its bid to become a nationwide media powerhouse collapse after its would-be partner, Tribune Media Co., withdrew from a planned $3.9 billion merger that drew the ire of regulators.
Tribune, which is on the hook for a $135 million breakup fee, blamed Sinclair and filed a $1 billion lawsuit that claimed the broadcaster “engaged in belligerent and unnecessarily protracted negotiations” with antitrust officials and with the FCC. The blow sent Sinclair’s shares tumbling as much as 5.4 percent.
“Regulatory approval should not have been hard to come by,” Tribune said in the complaint filed in Delaware Chancery Court. “Sinclair fought, threatened, insulted, and misled regulators in a misguided and ultimately unsuccessful attempt to retain control over stations that it was obligated to sell.”
The implosion marks the latest twist in an increasingly strange environment for mega-deals under President Donald Trump. A Sinclair-Tribune combination would have been unthinkable in the Obama era and was only made possible because of a rule change by the newly installed chief at the Federal Communications Commission. But the FCC later questioned Sinclair’s honesty and sent the proposed tie-up for a hearing by an administrative law judge. Trump, who tried to stop another monster-merger, AT&T’s acquisition of Time Warner, called centers, as well as standalone big-box retailers such as Kohl’s, are adjusting their hours this weekend. Barton Creek Square Friday: 10 a.m. to 10 p.m. Saturday:10a.m.to10p.m. Sunday: 10 a.m. to 8 p.m. Lakeline Mall Friday: 10 a.m. to 10 p.m. Saturday:10a.m.to10p.m. Sunday: 10 a.m. to 8 p.m. The Domain Friday: 9 a.m. to 9 p.m. Saturday: 9 a.m. to 9 p.m. Sunday: 10 a.m. to 8 p.m. TangerOutletsSanMarcos the FCC move “disgraceful.”
“Deals are getting done and yet somehow Sinclair ran into trouble and I think everyone’s surprised that this happened,” Barton Crockett, an analyst with FBR Capital Markets, said on Bloomberg Television. “Tribune is not only surprised but pretty upset about it.”
Ronn Torossian, a spokesman for Sinclair, didn’t immediately respond to a request for comment.
Free media advocacy Friday: 9 a.m. to 10 p.m. Saturday: 9 a.m. to 10 p.m. Sunday: 10 a.m. to 7 p.m. San Marcos Premium Outlets Friday: 9 a.m. to 10 p.m. groups cheered the demise of the deal.
Public Knowledge, an advocacy group that has been critical of the FCC under Pai, has been against a merger between Sinclair and Tribune from the start.
“While what has apparently killed this deal was Sinclair’s pattern of deception at the FCC — a fact that should affect its future dealings at the Commission — the deal was bad on its own merits, Saturday: 9 a.m. to 10 p.m. Sunday: 10 a.m. to 7 p.m. Round Rock Premium Outlets Friday: 10 a.m. to 10 p.m. Saturday:10a.m.to10p.m. and this latest development is good for consumers,” said Phillip Berenbroick, senior policy counsel at the organization. “Broadcasters are supposed to serve their local communities. This deal would have contributed to the trend where ‘local’ news and ‘local’ programming is created or scripted out of town.”
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The tax holiday, which got its start in 1999, isn’t limited to brick-and-mortar shops. Online retailers shouldn’t be collecting sales tax on eligible items this weekend either, according to the state.