“I get knocked down, but I get up again.” (Chumbawamba) Mortgage bonds have bounced up and down in recent weeks as global trade headlines sparked volatility. The markets were closed Wednesday for Independence Day, but Friday’s Jobs Report also brought reasons to celebrate.
Non-farm payrolls rose by 213,000 new jobs in June, above the 195,000 expected, the Bureau of Labor Statistics reported. The figures for April and May were also revised higher by a total of 37,000 new jobs. Professional and business services, manufacturing and health care saw an increase in jobs, while retail trade lost jobs.
The unemployment rate rose to 4.0 percent, while the labor force participation rate edged higher to 62.9 from 62.7 as more Americans entered the labor force.
There was a downside, however, as the lack of meaningful wage growth continues. Average hourly earnings increased just 0.2 percent in June, after the 0.3 percent rise in May. Over the last year, average hourly earnings were up 2.7 percent.
Home loan rates moved lower in the latest week as mortgage bonds improved due to the volatility in the markets.
Inflation reports highlight the second half of the week.
- News on wholesale inflation via the Producer Price Index will be released on Wednesday, followed by the Consumer Price Index on Thursday.
- Weekly Initial Jobless Claims will also be delivered Thursday.
- Look for the Consumer Sentiment Index on Friday.
If you or someone you know has questions about home loans, please give me a call. I’d be happy to help.