The monthly jobs report was a little bit of a mixed bag and wound up not having too much of an effect on mortgage rates today. Right now, rates are on track to head into the weekend close to where they kicked off the week. This is good news for anyone looking to purchase or refinance. Read on for more details.
Where are mortgage rates going?
Rates little changed on the week
Employment Situation
Today we got the biggest economic release of the week–the monthly jobs report for November. Financial market participants always keep an eye out for that report and this time around was no different.
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Taking a look at the numbers we can see that the headline reading of jobs added came in at 228,000, which is decently higher than the 190,000 that was expected.
The report also showed that the unemployment rate remained at 4.1% and average hourly earnings rose by 0.2%.
A negative in the report, however, is that the prior revised reading for average hourly earnings was adjusted lower to -0.1%, increasing investor concern over stagnant wage inflation.
All things considered, though, it’s a strong report that points to a healthy U.S. economy.
Federal Reserve getting ready to raise benchmark interest rate
Looking ahead to next week we have the FOMC’s final meeting of 2017 next Tuesday and Wednesday. There is virtually no doubt that they will raise the nation’s benchmark interest rate–the federal funds rate–by a quarter point on Wednesday.
The markets have already priced in that increase but there’s still a chance we get some adjustments based on what type of language the Fed uses to to describe the U.S. economy and their current approach to monetary policy.
It will also be the last time Fed Chair Janet Yellen take part in a post-meeting press conference.
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Rate/Float Recommendation
Lock now
Mortgage rates are on track to finish the week right where they started. Given that rates have remained on the lower end of the spectrum for 2017, this is good news for borrowers.
Mortgage rates are expected to rise over the coming weeks and months so we believe it’s smart for anyone looking to buy a home or refinance to lock in a rate now.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Employment Situation
- See above for details.
Consumer Sentiment
The consumer sentiment index for December came in at 96.8.
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Notable events this week:
Monday:
- Factory Orders
Tuesday:
- International Trade
- PMI Services Index
- ISM Non-Mfg Index
Wednesday:
- ADP Employment Report
- Productivity and Costs
- EIA Petroleum Status Report
Thursday:
- Jobless Claims
- Fedspeak
Friday:
- Employment Situation
- Consumer Sentiment
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from Total Mortgage Blog http://ift.tt/2jaCTpY
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