Mortgage Rate Move Higher on Jobs Report Data

By
Mortgage and Lending with Movement Mortgage NMLS # 574681

 

Good afternoon...

October's Non-farm payroll report showed 204,000 jobs added, far exceeding analysts prediction of 125,000. The figures for August and September were also revised higher. Mortgage rates reacted quickly and moved higher as a result of all of this. 

The mortgage market was feeling some relief as the slow growth in the labor market was delaying the Federal Reserve from reducing their asset purchases. With with positive jobs figures, economists are wondering if the Fed will begin QE3 tapering as soon as December.

Some analysts are saying that the numbers don't make sense, especially considering the government shutdown putting so money people temporarily out of work. It's also interesting to note how much weight the jobs info has on mortgage rates, considering there are so many other issues right now, namely the Obamacare debacle, continuning problems in the middle east, and the fact that Congress voted to lend themselves more money, increasing our deficit to over $17 trillion. All of these factors equate to some very low consumer confidence levels. Since consumers ultimately drive the economy, it'd be just as well if investors focused on what's effecting them. And the jobs report, in my opinion, isn't accurate at all. There are millions of people that have either stopped looking for work, or they've exhausted their unemployment benefits. The jobs report shouldn't be the sole factor in moving rates, but there's not much I can do about it!


Bottom line is that interest rates will continue to rise if the Fed gives any indication of tapering in the near future. So the next speech from Ben Bernanke will be very highly anticipated. It's too bad 

Stay tuned...

Posted by

JP Marzano

NMLS ID# 574681

O: 312-654-7216

M: 312-608-1555

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