Americans watching cable news might have been cheered when they saw the latest jobs report: the United States added 303,000 new nonfarm jobs in March and unemployment fell to 3.8%. Both numbers exceeded expectations.
But viewers who are also shopping for a mortgage may have had a different reaction. Economics and housing experts say less unemployment means more pressure on Federal Reserve Chair Jerome Powell to keep interest rates high. And the result has been an uptick in rates.
Powell has made it clear his priority is getting inflation under control. His target number for rising prices is a 2% annual rate. Instead, prices have been rising nearly twice that fast, and the inflation rate has been higher than expected…
The labor market experienced unexpected gains last month, with nonfarm payrolls rising 199,000, adding to a 150,000 bump in October. Unemployment fell to 2.7%, workforce participation increased, and monthly wage growth saw their biggest boost of the year.
This paints a difficult picture for the Fed moving into its FOMC meeting, scheduled for this week.
The Central Bank prefers a slower hiring pace to help it combat inflation. Its rate hikes have moved the economy closer to its 2% inflation target, down from 9.1% in June 2022 to 3.2% last month.
Investors are hoping for cuts to federal funds rate sooner rather than later but November’s employment gains give the Federal Reserve more reason to hold interest rates at their…
Mortgage rates climbed again last week following treasury yield gains in the wake of political turmoil and an unexpected jobs report spike.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.49%, jumping from 7.31%. A year ago at this time, the 30-year FRM averaged 6.66%.
The 15-year fixed-rate rose to 6.78% from 6.72%. A year ago, it averaged 5.90%
“Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,” said Sam Khater, Freddie Mac’s Chief Economist. “Several factors, including shifts in inflation, the job market, and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand.”
Chaos…
Good Morning! Today is Friday, February 4. Islamic State’s leader died during a nighttime raid by U.S. special forces in northwestern Syria. The US is short on blood due to below-average donations amid Covid-19. The House is set to approve a $350 billion initiative to boost U.S. competitiveness with China and others, but the Senate may fight it. The Mortgage Note Reports Standing Up For Independent Mortgage Bankers In 2022 And Beyond:The executive director of Community Home Lenders Association is working to educate policymakers in Washington, D.C., while articulating the perspective of independent mortgage bankers. Forbearances Drop: Active forbearance plans fell by 45,000 plans (-5%) last week, according to Black Knight’s blog, Vision. More than 90% of homeowners who entered Covid-related forbearance…
