Home Borrowing Costs Inched Lower This Week And Remain At Historically Low Levels.
Freddie Mac reports that the 30-year fixed-rate mortgage fell two basis points to 2.98% with 0.6 in points and fees. A year ago at this time, the rate was 3.26%. It is up from 2.65% on January 7 of this year. Sam Khater, Freddie Mac’s Chief Economist said, "The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.”
First-time unemployment claims fell to the lowest level since the shutdowns began last year. Weekly Initial Jobless Claims decreased to 498,000 for the week ended May 1, 2021, from 590,000 in the previous week. To put it into perspective, the week of April 4, 2020 claims were over 6 million as the shutdowns took hold. Continuing claims, or those receiving benefits for at least two weeks straight, were at 3.69 million from 3.653 million. With more and more states reopening their economies, many unemployed Americans should be able to go back to work.
The Jobs Report for April will be released tomorrow at 8:30 a.m. ET. Expectations are calling for a sizable gain of 820,000 after the blowout 916,000 surge in March. The labor market has rebounded from the depths seen last year at the time of the shutdowns. In April 2020, there were 20.5 million jobs lost due to the shutdowns. And while there are still many Americans out of work, business owners in bars and restaurants can't find workers to fill positions.