💸 Jobs Week

Mortgage Rates Mixed Bag ⬆️⬇️ — Job offer during jobs week. Oktoberfest sees 200+ attendees. Inflation easing. Lender Panel INVITE.

Author

Glenn Groves
October 01, 2024

Issue 91 - Good Morning and Happy Tuesday.

This week is all about jobs! The labor market takes center stage with key reports on job openings, private payrolls, and the much-anticipated nonfarm payrolls and unemployment rate on Friday.

These updates will give us a clearer picture of the economy's health and could have a big impact on mortgage rates and buyer confidence.

If hiring slows or unemployment rises, we may see a shift in interest rates, potentially creating opportunities for both buyers and sellers in the coming weeks.

Married With Children, via Tenor

Personal note: Busy times. Our Oktoberfest party was on Saturday. Thank you to those who made it and donated. Over 200 people showed up! Pictures of the Toys for Tots toy haul will be posted later.

Jamie & Glenn, Oktoberfest 2024

INDUSTRY
Join GTG Financial Today

We’re actively searching for a new team member.

Who do you know that would work well at GTG Financial?
I am looking to hire a loan officer assistant for my personal team.

Experience is encouraged but not required.

  • Roadmap to becoming an originating loan officer if you are interested. We’re wholesale brokers primarily dealing with A paper clients. Cross-training in processing is available.

  • Full-time, health care, 401k match, in-office position in Santa Rosa. Team bonus structure.

  • You must be able to speak “gif” via team chats and endure movie quotes and endless sports references. You cannot be allergic to technology.

Moneyball, 2011 - Columbia Pictures via Tenor

  • Do you have a college-age kid who might be interested in mortgage finance?

  • Do you know someone working at a boring lender looking for a fun work environment where they can learn and thrive?

  • Are you thinking of moving to the “Dark side” yourself?

    Reply, and let’s have a conversation!

INTEREST RATES
Rates 📢 October 1st, 2024

10-Year-Treasury 30-Day Snapshot

Product

Rate / APR

Weekly Change

↔️ Conv.

6.125% / 6.140%

-.000%

↔️ Conv. HB

6.500% / 6.511%

-.000%

⬇️ JUMBO

6.375% / 6.384%

-.375%

↔️ FHA 3.5% DP

5.250% / 6.175%

-.000%

⬆️ VA 0% DP

5.500% / 5.707%

+.250%

Rate data as of morning of publication. Unless noted otherwise, all scenarios are assuming 30 Year-Fixed mortgage, Purchase or R/T Refinance. No origination points charged, 780 FICO score, and 20% down payment. Provided for consumer education only and does not serve as a binding offer to extend lending. Payment period, interest rate, APR, and other terms subject to income, asset, and credit profile qualification. Provided courtesy of GTG Financial, Inc. NMLS 1595076. Equal housing opportunity. www.nmlsconsumeraccess.org

  • Rate Markets: After a full week of “no, rates have increased a little bit” conversations, we’re entering an excellent little channel of stability… welcome to Jobs Week with a sprinkle of a massive union strike to keep it spicy, lol.

Tuesday: JOLTS, ISM Manufacturing —> 12:01 EST, the International Longshoreman’s Association will strike. This could cause supply chain issues and it is unknown how the bond market will react in the morning.

Wednesday: Mortgage Apps, ADP Employment Report

Thursday: Initial Jobless Claims, ISM Services, Challenger Job Cut Report

Friday: BLS Jobs Report

  • Bottom Line: Rates have settled down a bit after the last week and a half of increases. We are entering a week of potential landmines that could rock rates a bit. Buckle up.

TECHNICALS
Inflation Data Leads The Way

Inflation Eases, Home Sales Rise, and Prices Hit Record High: 🗝️ Key Takeaways.

  • 📉 Consumer Inflation Moderates
    Inflation continues to ease with 0.1% growth in August’s PCE. Year-over-year, inflation fell to 2.2%, and Core PCE (excluding food and energy) ticked up slightly to 2.7%.

  • 🏡 New Home Sales Beat Estimates
    Sales of new homes dropped 4.7% from July but remained strong at 716K units, above forecasts. Limited availability of completed homes is driving buyer demand for ready-to-move-in properties.

  • 📝 Pending Home Sales Increase
    Signed contracts on existing homes rose 0.6% from July, though sales are still down 3% from a year ago. Affordability is slowly improving as mortgage rates drop.

  • 📊 Record High for Home Prices
    The Case-Shiller Index showed home prices rose 0.2% in July, hitting another all-time high. Home values are up 5% from last year, with big cities seeing even higher growth.

  • 📈 U.S. Economy Grew by 3%
    The U.S. economy expanded by 3% in Q2, with continued growth expected in Q3, driven by consumer spending and business investment.

  • 📉 Slower Pace of Hiring
    Initial jobless claims fell to 218,000, but continuing claims rose to 1.834 million, suggesting employers are slowing down on hiring.

EVENTS
North Bay Real Estate Agents!!

Join us at the Epicenter for a lender panel about the current market.

Reply

or to participate.