March 4th, 2016 3:43 PM by Jonathan White
Mortgage Market News for the week ending March 04,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Newton, MA 02459
A wide range
of major U.S. economic data was released over the past week covering
the labor market, manufacturing, services, and housing. Overall, the
data suggested that U.S. economic growth and inflation were a little
stronger than expected. As a result, mortgage rates ended the week
Employment report showed that job gains remained strong. Against a
consensus forecast of 190K, the economy added 242K jobs in February.
Upward revisions to prior months added another 30K. The economy has
added an average of 228K jobs per month over the last three months.
The Unemployment Rate remained at 4.9%, as expected.
hourly earnings, an indicator of wage growth, declined slightly from
January, well below the consensus for a modest increase. After a
concerning rise in wages in January, the decline in February was good
news for mortgage rates and partially offset the negative effect of the
strong job gains.
ISM national manufacturing survey released on Tuesday indicated that
things may be turning a little more positive for this sector. The
survey rose to the best level in five months. For mortgage rates, one
component of the survey was concerning. The prices paid component
measures the change in the prices that manufacturers charge. In
February, the survey on prices paid revealed a much higher
reading than was expected, hinting at rising inflation. This follows
significant increases in the recent broad-based monthly inflation
measures. Mortgage rates are highly influenced by the outlook for
future inflation. As inflation expectations rise, so do mortgage
ahead, the biggest event next week will be the European Central Bank
(ECB) meeting on Thursday. It is expected that the ECB will announce
additional stimulus measures, which could include an expansion of its
bond purchase program. Very little U.S. economic data will be released
next week. Import Prices will come out on Friday. There will be
Treasury auctions on Tuesday, Wednesday, and Thursday.
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