Last week’s scheduled economic news was slim last week. The Federal Open Market Committee of the Federal Reserve issued its post-meeting statement, weekly readings on average mortgage rates and first-time jobless claims were also issued.

FOMC: Fed Target Rate Unchanged, but Expected to Rise in December

The Federal Open Market Committee of the Federal Reserve announced that it did not raise the target federal funds rate but set the stage for raising the benchmark rate n coming months. The current range for the Fed rate us 2.00 percent to 2.00 to 2.25 percent. The Fed expects to increase rates three times in 2019 provided that strong economic conditions prevail.

FOMC members watch inflation, financial markets and domestic and global news to determine how or if to adjust the Federal Reserve’s target interest rates range.

Although FOMC releases projections based on current events and financial developments, changes to financial markets or global events could cause the Fed to hold off on raising interest rates.

Mortgage Rates, Hit Seven-Year High, New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates that pushed current mortgage rates to their highest levels in seven years. Rates for a 30-year fixed rate mortgages rose 11 basis points to an average of 4.94 percent; 15-year fixed rate mortgage rates averaged 4.33 percent, which was ten basis points higher than the prior week.

Rates for a 5/1 adjustable rate rose by 10 basis points to an average of 4.14 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell by 1000 new claims to 214,000 new claims filed. Analysts expected 210,000 new claims filed based on the prior week’s reading of 215,000 first-time jobless claims filed.

What‘s Ahead

Next week’s economic reports include readings on inflation, retail sales and weekly reports on mortgage rates and mortgage rates.

Last week’s economic news included readings for Case-Shiller Home Price Indices, Commerce Department readings on construction spending and the University of Michigan’s reading on consumer confidence. Labor sector reports on jobs growth and the national unemployment rate were posted along with weekly readings on mortgage rates and first-time jobless claims.

Case-Shiller: Home Price Growth Lowest in 20 Months; Construction Spending Falls

Home price growth hit its lowest pace in 20 months according to Case=Shiller’s 20-City Home Price Index for August. Home prices grew by 5.80 percent year-over-year as compared to July’s growth rate of 6.00 percent.

Analysts said that slowing growth of home prices could signal that home prices have reached their peak; Inventories of homes for sale are near the six-month inventory reading considered a normal inventory of homes for sale.

Sales have slowed in recent months due to rapidly rising home prices, high demand for homes and slim inventories of available homes. Increasing supplies of homes for sale are a sign that housing markets are balancing to accommodate prospective buyers.

Construction spending was flat in September at a seasonally-adjusted annual rate of $133 trillion. Analysts expected 0.20 percent growth in construction spending based on August’s growth rate of 0.80 percent. The slowdown in spending was likely due to seasonal dips in construction activity as winter approaches.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week; rates for 30-year fixed rate mortgages averaged three basis points lower at 4.83 percent. Rates for a 15-year fixed rate mortgage averaged 4.23 percent. Rates for 5/1 adjustable rate mortgages were 10 basis points lower at 4.04 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims were lower last week with 214,000 new claims filed; analysts expected 212,000 new claims to be filed based on the prior week’s first-time claims 216,000 new claims filed. Reported. The Commerce Department reported 250,000 public and private sector jobs added in October. ADP added 227,000 private sector jobs in October. The national unemployment rate was unchanged at 3.70 percent.

The University of Michigan’s Consumer Confidence Index reported an index reading of 137.90 in October as compared to September’s reading of 135.30 and an expected reading of 136.40.

What‘s Ahead

This week’s scheduled economic reports include the post-meeting statement from the Fed’s Federal Open Market Committee along with weekly reports on mortgage rates and new jobless claims.