September 4th, 2015 12:01 PM by Jonathan White
Mortgage Market News for the week ending September 04,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Newton, MA 02459
In the face
of continued stock market volatility and major economic data, mortgage
rates showed surprisingly little movement. For the second straight
week, mortgage rates ended with little change.
Employment report came in close to the forecasts overall. A small
shortfall in job gains was offset by stronger than expected wage gains
and a decline in the unemployment rate.
consensus forecast of 220K, the economy added 173K jobs in August,
but upward revisions to prior months added another 44K. The
unemployment rate declined from 5.3% to 5.1%, the lowest level since April
2008. It was 6.1% a year ago. Average hourly earnings, a proxy
for wage growth, were 2.2% higher than a year ago.
been looking to the Employment report to provide more clarity on
whether the Fed will begin to raise the federal funds rate at the
September 17 meeting. The on target data provided little guidance,
however, and investors remain divided. One reason is that recent
comments from Fed officials have spanned the spectrum from fully
supportive to strongly against. There is broad agreement that the
performance of the labor market is on track to match the Fed's
conditions for a rate hike. Inflation, however, is much more
debatable. Core inflation has held far below the Fed's target level of
2.0%, and potentially slower economic growth around the world has
reduced expectations for future inflation.
will be a light one for economic reports. The JOLTS report,
measuring job openings and labor turnover rates, will be released on
Wednesday. The Producer Price Index (PPI), which focuses on the
increase in prices of "intermediate" goods and services used
by companies to produce finished products, will come out on Friday.
Import Prices and Consumer Sentiment will round out the schedule. In
addition, there will be Treasury auctions on Tuesday, Wednesday, and
Thursday. Mortgage markets will be closed on Monday in observance of
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