August 7th, 2015 12:29 PM by Jonathan White
Mortgage Market News for the week ending August 07,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Co. NMLS MB2218
Wellesley, MA 02481
Is Fed Rate
past week, comments from a Fed official increased investor expectations
for a Fed rate hike this year, causing mortgage rates to move a little
higher. The week's economic data was mostly right on target and had
little net effect.
Fed member Dennis Lockhart gave investors the impression that the first
federal funds rate hike is likely to take place soon. In essence, he
said that he believes that a rate hike will be appropriate in September
unless the economy significantly underperforms expectations. While
other Fed officials may feel differently, investors took this as a
warning to be prepared for a rate hike at the next Fed meeting on
economic reports released since Lockhart's comments showed that the
economy remains on track to meet his requirements for a rate hike.
Wednesday's ISM Services data revealed an unexpectedly large
increase to the highest level since 2005.
Employment data, the biggest report of the month, matched the
consensus forecast across the board. The economy continued its pace
of strong job gains above 200K with the addition of 215K jobs in
July. The Unemployment Rate remained at 5.3%. Average Hourly
Earnings, an indicator of wage growth, were 2.2% higher than a year
ahead, we will get more labor market data on Tuesday with the JOLTS
report, which measures job openings and labor turnover rates. After
that, Retail Sales will be released on Thursday. Since retail
sales account for roughly 70% of economic activity, this is one of the
biggest reports of the month. Industrial Production, another important
indicator of economic activity, will come out on Friday. In addition, there
will be Treasury auctions on Tuesday, Wednesday, and Thursday.
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