The first of two key employment reports was released on Wednesday showing that private employers added fewer jobs than expected in August. ADP reported that private employers added 190,000 workers last month, below the 201,000 expected, while July was revised lower to 177,000 from 185,000. The report revealed that small businesses added 85,000 jobs, midsize, 66,000, and large companies, 40,000. Though below expectations, job growth has been steady and will be a key deciding factor for the Federal Reserve's decision on future interest rate hikes.
Worker productivity surged in the second quarter of 2015 and rose at the fastest pace since late 2013, though it has been running below more normal levels for the past year. Productivity rose by 3.3% in the second reading for the second quarter, above the 1.3% that was registered from the first reading and above the 2.8% expected. Within the report it showed that labor costs fell 1.4%, which signals that wages are not increasing, despite the fact that the Unemployment Rate has been declining.
Mortgage application volume soared in the latest week as home loan rates remained at their lowest level since late April. The Mortgage Bankers Association reported that its Market Composite Index, a measure of total loan application volume, rose by 11.3% in the latest week. In addition, the refinance index soared 17%, while the purchase index was up 4%. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.08%, with points increasing to 0.37 from 0.36.
Comments(0)