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- Mortgage rates plunge to the lowest level in more than a year after weak employment report
Mortgage rates plunge to the lowest level in more than a year after weak employment report
Plus: 38% of buyers hitting pause until after the election
It's Monday. Thanks for joining us. Today’s newsletter is 511 words, 2.5 minutes.
Disclaimer: Average mortgage rates as of August 2, 2024. © MND's Daily Rate Index.
1. Job growth totals 114,000 in July, much less than expected, as the unemployment rate rises to 4.3%
The Bureau of Labor Statistics released the July jobs report Friday morning. Here are the key data points:
Payrolls: An increase of 114,000 vs. 175,000 expected in July.
Revisions: June's gain was revised lower to 179,000 from 206,000; May's gain was revised lower to 216,000 from 218,000.
Unemployment rate: 4.3%, up from 4.1% last month.
Market reaction: Stocks sank, Treasury and Bond yields fell on worries about an economic slowdown.
2. Mortgage rates plunge to the lowest level in more than a year after weak employment report
The average rate on the popular 30-year fixed mortgage dropped 22 basis points to 6.4% Friday, according to Mortgage News Daily. That is the lowest rate since April 2023. The 15-year fixed rate fell to 5.89%, its lowest level since early May 2023.
The drop followed a weaker-than-expected monthly employment report, which sent bond yields falling fast. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury.
“Between Powell’s equivocal openness to ‘multiple cuts’ in 2024 on Wednesday and this morning’s sharply weaker jobs report, the more aggressive rate cut narrative is quickly coming into focus”
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3. More Nuggets
⏹️ HUD ends redlining probe into HSBC after complaint withdrawal. (BankingDive)
📝 eXp Realty’s forms leave the choice to offer buyer broker compensation to sellers: Pareja. (yahoo!finance)
💰 Ginnie Mae funding request passed by senate committee. (Scotsman Guide)
4. 38% of buyers hitting pause until after the election
With less than 100 days until the 2024 election, a Veterans United Home Loans survey reveals that 60% of prospective homebuyers are considering the election's impact, with 38% halting their search until after Election Day.
This hesitancy, coupled with high mortgage rates and affordability concerns, could further strain the housing market. The Federal Reserve's potential rate cuts may force buyers to choose between securing lower rates now or waiting out election uncertainty.
5. Planet Home Lending to acquire the retail division of Axia Home Loans
Mortgage servicer Planet Home Lending is acquiring the retail division assets of Axia Home Loans, an employee-owned lender based in Washington state, according to HousingWire.
Employees were informed of the transaction during a one-hour call, with most retail sales and key operations staff offered positions at Planet. However, many employees will be made redundant, with layoffs effective by August 2.
☀️ You’re all caught up. See you on Wednesday!
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