The monthly jobs report for December fell a little short of what was expected, so that took some upward pressure off of mortgage rates today.
We still think, however, that mortgage rates will continue to rise over the coming weeks and months. If you’re thinking of a purchase or refinance, you should try to act soon. Read on for more details.
Where are mortgage rates going?
Rates flat after soft jobs report
Well, we made it to the first Friday of the month and that means the monthly jobs report got released. According to the Bureau of Labor Statistics, 148,000 private sector jobs were added in December.
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That’s well below the 191,000 that analysts had expected, but the report isn’t a total disappointment, with the unemployment rate staying at 4.1%, and average hourly earnings increasing by 0.3%.
In the end, it’s kind of a wash with the good and bad adding up to a big nothing-burger in the markets. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is up a little over one basis point right now.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are flat to ever so slightly higher as we approach the weekend.
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Rate/Float Recommendation
Lock now while rates are low
Today’s monthly jobs report showed enough strength to push Fed officials into raising rates at upcoming FOMC meetings. Therefore, our outlook remains for mortgage rates to rise over the coming months.
It only makes sense then, that anyone looking to buy a home or refinance should try to lock in a rate sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Employment Situation
The monthly jobs report for December showed 148,000 jobs were added. The unemployment rate remained unchanged at 4.1%.
International Trade
The nation’s trade deficit widened to $50.5 billion in November.
Factory Orders
Factory orders for November rose 1.3%.
ISM Non-Mfg Index
The composite index for December came in at a 55.9. That’s a little lower than expectations.
Fedspeak
Cleveland Fed President Loretta Mester at 12:30pm.
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Notable events this week:
Monday:
- Markets Closed: New Year’s Day
Tuesday:
- PMI Manufacturing Index
Wednesday:
- ISM Mfg Index
- Construction Spending
- FOMC Minutes
Thursday:
- ADP Employment Report
- Jobless Claims
- PMI Services Index
- EIA Petroleum Status Report
- Fedspeak
Friday:
- Employment Situation
- International Trade
- Factory Orders
- ISM Non-Mfg Index
- Fedspeak
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from Total Mortgage Blog http://ift.tt/2m0g4Tk
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