After falling to 14-month lows in the end of March, it’s only natural—and inevitable—that the rates would begin to rise again. In April, the 30-year fixed rates have grown yet again from the lowest of 4.06% to 4.2%.
This week, 30-year fixed rates are finally coming down a little and closing the week at 4.14%, while last year it was at 4.55%. The market expectation is to see the rates staying low with 10-year treasury yields at around 2.5% from the start of the month.
Jobless claims had another poor showing in April. Jobless claims for the month of April are up 11% over last April. As numbers like these are posted, it will draw more attention to this particular data going forward, and rates are less likely to rise.
Bonds improved after the Fed’s statement pointed out weakening inflation on Wednesday, May 1st. However, they quickly reversed course when Chairman Powell made a comment that he believed the inflation weakness was due to “transitory factors”. Regardless of which faction is correct, though, the borrowers benefit, and as a result, this month is a great month for mortgages in general.