Last Friday, the Bureau of Labor Statistics released a very encouraging jobs report. The economy gained 916,000 jobs in March – well above expert projections of 650,000 to 675,000.
Dated: September 15 2016
ECONOMIC UPDATE: September 15, 2016 Mortgage rates had a good start to the week with another weaker-than-expected major economic report. Things changed later in the week, however, with negative news from the U.S. Fed and the European Central Bank (ECB). Mortgage rates ended the week a little higher.After recent shortfalls in labor market and manufacturing sector data, the service sector followed suit on Tuesday. The ISM national services index declined sharply to 51.5, far below the consensus, and the lowest level since 2010. Since slower growth reduces the outlook for future inflation, this data was positive for mortgage rates.To help boost economic growth, central banks around the world have lowered short-term rates and engaged in massive bond-buying programs. The added demand for bonds from central banks has driven up prices and pushed down global yields, helping U.S. mortgage rates reach their current low levels.The ECB’s current bond purchase program is set to expire in early 2017. Investors had been hoping that the ECB would announce an extension to that program at its Thursday meeting. Instead, the ECB said that no additional stimulus was needed at this time.On Friday, U.S. Fed Member Eric Rosengren said that “a reasonable case can be made” for raising the federal funds rate. This was particularly concerning for investors, as Rosengren has long been known as a supporter of loose monetary policy. Investor expectations for a rate hike at the next Fed meeting on September 21 rose to about 30% from 18% the prior day.Source: MBS Quoteline
David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is an 18 year resident of the New Jersey Gold Coast, with the local knowledge ....
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