Last Call - Low Interest Rate Punch Bowl Soon To Be Taken Away!

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Mortgage and Lending with Atlantic Home Loans 12937

 

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Comments from Fed officials and a much stronger than expected Employment report were negative for mortgage rates over the past week. As a result, mortgage rates ended the week higher.

 

Many top Fed officials made speeches over the last few days, and they shared a similar message.  As the Fed's Lockhart put it, a rate hike is possible at the next meeting on December 16, but that it is not a "certainty." Fed Chair Yellen said essentially the same thing. Each Fed official repeated that the decision will depend on the performance of the economy. 

 

 

With this in mind, Friday's stronger than expected Employment report caused investors to increase their expectations for a rate hike at the next Fed meeting. Against a consensus forecast of 190K, the economy added 271K jobs in October, the strongest reading of the year. Upward revisions to prior months added another 12K. The average job gains over the past three months were 187K. 

 

The Unemployment Rate unexpectedly declined from 5.1% to 5.0%, the lowest level since April 2008. Average Hourly Earnings, an indicator of wage growth, also far exceeded expectations, and they were 2.5% higher than a year ago. This report revealed strength in nearly every area. 

 

Next week, the second biggest report of the month, Retail Sales, will be released on Friday. Retail Sales account for about 70% of economic activity. Before that, the JOLTS report will be released on Thursday. JOLTS measures job openings and labor turnover rates, and this report is closely watched by Fed officials. In addition, there will be Treasury auctions on Monday, Tuesday, and Thursday. Mortgage markets will be closed on Wednesday in observance of Veterans Day. 

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Home Buying
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Rhode Island
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mortgage rates
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Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The economy and the middle class are struggling and it is not going away either

Nov 06, 2015 10:21 PM #1
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