“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 PayrollsNon-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.

Related Articles

This past week home loan rates ticked up sharply from the previous week leaving many wondering – have rates bottomed? For would-be homebuyers, real estate agents, and folks working in the housing industry, here are three things affecting home loan rates today and stories to follow in coming weeks and…
Read More of the post Stocks and Mortgage Rates Rise

Bonds and home loan rates hate good news. So, the influx of positive news abroad coupled with strong jobs data here in the U.S. pressured mortgage bonds lower and home loan rates higher. The main event, which helped Stocks and hurt home loan rates, included fresh progress on the U.S./China…
Read More of the post Too Much of a Good Thing

Fed vs. Recession Aug 23 2019

Home loan rates finished this past week essentially where they began, near 3-year lows. With all the chatter of a global recession and elevated fears that the U.S. will slip into a recession thanks to the recent inverted yield curve, why haven't rates improved further? Is the bond market telling…
Read More of the post Fed vs. Recession

The U.S. Bond market traded in a tight sideways range, leaving home loan rates essentially at unchanged levels week over week. However, the technical picture reveals Bond market indecision as prices trade near the best levels of the year. Why the indecision? The financial markets are bracing for a multitude…
Read More of the post Indecision Ahead of Huge News Week