Friday's Job's Numbers Will Set the Track for Rates
Last week saw a break out to the upside for mortgage rates after hitting their lowest point since last year. The exact reason is hard to pin point of course but a couple of the factors that contributed to the jump in rates.
Greek Bailout-Once again Greece is looking for money from the EU to bail them out so they can make their debt payments. They passed an unfavorable austerity program that the other countries were looking for so they would be will to give them the cash flow. I'm sure they will stumble again but at least there is a new band-aid. There is fear this will spread to Portugal and Italy but the bleeding has slowed for now
The End of QE2-The fed ended their controversial quantatative easing program, at least for now. It ended the fed buying mortgage backed securities to help free up liquidity and keep rates low. I'm sure round 3 will come eventually, but we are off the government Cool-aid for now.
Better Data- We finally hit a good string of regional and national manufacturing data. After some poor reports there was some good news that led to the best week in the equities market in 3 yrs.
Friday the jobs report for June is released at 830 AM and the market is hoping for a better report than last month.
|Nonfarm Payrolls - M/M change
||63,000 to 160,000
|Unemployment Rate - Level
||9.0 % to 9.2 %
|Average Hourly Earnings - M/M change
||0.1 % to 0.2 %
|Av Workweek - All Employees
||34.4 hrs to 34.4 hrs
|Private Payrolls - M/M change
||100,000 to 183,000
I'm convinced we will never be under 7% again nor do we have to be to be an economic power house. This recession taught companies how to be more profitable with less over head and more investment in technology. If this is the case it means a long drought for the housing market but hopefully I'm wrong.
The mortgage rates will react up or down on Friday depending on the report so those with floating rates pay close attention.
John B. Saari
Direct Cell: 508-740-7442
Secure Fax: 781-503-1478
The QR Code To My Published Mortgage Application freemortgagebuddy