Mortgage rates were unchanged in the latest survey due in part to mixed signals from various sectors of the economy. Freddie Mac says that data for manufacturing and service industries varied while construction spending fell modestly. The 30-year fixed-rate mortgage is at 3.68% with 0.5 in points and fees. Freddie Mac went on to say that homebuyer demand continued to improve, rising 8% and that homebuyers remain bullish on the real estate market.
On the trade war front, the Chinese Commerce Ministry said today that the two sides are still in talks and believes if a "Phase One" agreement is to be reached, it would have to come with lower tariffs. Lowering tariffs is not a foregone conclusion and the reason why stocks are near unchanged. Despite the mixed trade headlines along with the shenanigans in D.C., the S&P is up 20% year-to-date. This is in response to U.S. economic strength, historically low unemployment and strong U.S. companies easily outpacing their foreign counterparts.
The closely watched government jobs report for November will be released on Friday which includes non-farm payrolls and the unemployment rate. It is expected that U.S. employers hired 182,000 new workers last month, a lofty number. The number is well above the 128,000 workers added in October due in part to the end of the GM strike, where workers get back to work, plus hiring by the Census Bureau may also be factored into the data. The U.S. job market continues to be a bright light for the U.S. economy.
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