Happy Friday, and welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.
Click here to get today’s latest mortgage rates (Feb. 3, 2017).Where are mortgage rates going?
January Jobs Report
It’s the first Friday of February and that means the monthly jobs report has been released. It’s the biggest market moving event almost every month, and there are certainly a lot of eyes on it this time around.
The headline reading tells us that 227,000 private sector jobs were added in January. That’s significantly higher than economists’ expectations for 175,000, and is the best reading since September. The unemployment rate ticked up one tenth to 4.8%, and the participation rate rose two tenths to 62.9%. The one blemish in the report is average hourly earnings, which only rose by a sluggish 0.1%, compared to the consensus for 0.3%. The average workweek was basically flat at 34.4 hours.
Click here to get today’s latest mortgage rates (Feb. 3, 2017).While the headline reading was positive, the slow wage growth is what investors are focusing on this morning. Treasury yields took an immediate hit, with the U.S. 10-year yield dropping about four basis points down to 2.43%. Mortgage rates have a tendency to trail behind the 10-year yield, so we’re looking at rates moving lower today.
Inflation data is always top of mind at the Fed, and with wages barely moving, it looks less likely that there will be any adjustment in the federal funds rate come March. In all reality, it has never really seemed as though the March meeting was ever actually in play. After all, the fed fund futures only had the chance of a rate hike yesterday at 17.7%. That’s not what most people would consider good odds. Now, with the release of the jobs report that number has dropped down to 4.4%.
What does this mean for me?
Mortgage rates are moving lower. We’ll see what happens throughout the day, but right now could certainly be a good time for anyone on the fence about a purchase or a refinance to lock in a solid rate.
Today’s economic data:
Monthly Jobs Report
- See above for analysis
Fedspeak
Chicago Fed President Charles Evans is set to speak today.
Click here to get today’s latest mortgage rates (Feb. 3, 2017).Notable events this week:
Monday:
- Personal Income and Outlays
- Pending Home Sales
Tuesday:
- FOMC Meeting Begins
- S&P Case-Shiller HPI
- Chicago PMI
- Consumer Confidence
Wednesday:
- ISM Mfg Index
- EIA Petroleum Status Report
- ADP Employment Report
- FOMC Meeting Ends
Thursday:
- Jobless Claims
Friday:
- Monthly Jobs Report
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2kAze3d
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