The labor market continues to produce positive numbers for employment as the U.S. economy grows stronger. ADP Private Payrolls rose 219,000 in July, above the 175,000 expected while June was revised higher to 181,000 from 177,000. July's 219,000 was the highest since February's 241,000. The job market is booming, impacted by the deficit-financed tax cuts and increases in government spending," says Mark Zandi, chief economist of Moody's Analytics.
It’s Fed Day! The Federal Open Market Committee meeting ends this afternoon with the 2:00 p.m. ET release of its monetary policy statement. The market does not expect a hike to the short-term Fed Funds Rate. Rather, the statement will be dissected for clues that could solidify expectations for two more hikes in 2018. The current Fed Funds Rate is at a range of 1.75% to 2%. It is expected that there will be a rate hike at the September meeting.
Mortgage rates edged higher in the latest week after some positive economic reports were released last week. Second quarter 2018 Gross Domestic Product rose 4.1%, which pushed Bond prices lower, rates higher. The 30-year fixed-rate mortgage rose seven basis points to 4.84%, though rates still remain historically low. The survey covers over 75% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.
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