November 6th, 2015 3:28 PM by Jonathan White
Mortgage Market News for the week ending November 06,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
1280 Centre Street
Newton, MA 02459
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.
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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