Rates Flat As Employment Report In Line With Expectations Mortgage interest rates were somewhat flat week over week despite high volatility as today’s employment report for May was in line with expectations. May Non-Farm Jobs increased by 175k on expectations that they would increase by 167k. Non-Farm Private Jobs increased by 178k, the same amount as expected. The unemployment rate increased to 7.6% on expectations that it would remain unchanged at 7.5% as 420k people entered the job market but only 315k found jobs. As a result of today’s employment report, it is still uncertain whether the Fed will soon begin to curtail the existing quantitative easing in the form of $85 billion in Treasury and Mortgage Backed Security purchases per month. Other economic data was mostly weaker than expected. Data weaker than expected included the May ISM Manufacturing Index, April Construction Spending, the May ADP Private Jobs Estimate, April Factory Orders, and the May ISM Services Sector Index.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,219, up about 100 points on the week. Crude oil spot prices are currently at $95.57 per barrel, up almost $4 per barrel on the week. The Dollar weakened versus the Yen and Euro on the week.
Next week look toward Thursday’s Jobless Claims and Retail Sales and Friday’s Producer Price Index (PPI) and Industrial Production as potential market moving events.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.125 to 4.25% with no points.
** Mortgage rates are subject to daily market fluctuations and can change without notice. Mortgage rates are also effected by down payment, occupancy, loan amount, credit score, lock period and property type.