MARKET UPDATE 1/4/2018
Mortgage rates are rising slightly this morning due to a better than expected ADP jobs report and faster than expected inflation data.
ADP announced this morning that 250,000 new jobs were added to payroll systems in December versus economists’ forecasts of 190,000. This is the 3rd consecutive month of at least 150,000 new jobs according to ADP, and the 11th out of the past 12 months of gains greater than 150,000. (See ADP Chart Below)
Yesterday ISM Manufacturing showed that U.S. factory activity increased more than expected in December. For December the ISM index increased to 59.7%. Readings above 50% indicate growth in manufacturing, which accounts for about 12% of the U.S. economy. This is the 5th consecutive month that the ISM index has beat economists’ estimates. (See ISM Chart Below).
The Prices Paid component of the ISM index, which is a closely watched inflation metric for the Fed, came in higher than expected @ 69 versus a 65 forecast showing increased inflation pressures at the manufacturing level. The Fed is hoping that it is only a matter of time before this inflation is passed unto the consumer level.
Tomorrow @ 8:30am the Non-Farm Payrolls Report (NFP) for December is released. Currently economists are forecasting 185,000 new jobs added to the U.S. economy in December and for the unemployment rate to remain steady @ 4.1%.
Given the shape increase in the ADP report this morning I wouldn’t be surprised to see estimates for tomorrow’s number to increase to > 200,000 new jobs.
For those of you who braved it into the office today I wish you safe travels getting home.
Blog Archive2019-10-31 12:05:18
Your mortgage refinance checklist:
Pending Sales Surprise, Up 1.5 Percent
Learn About Your Local Neighborhood -- Or One You're Considering
The Myth of the 20% Down Payment
2020 Housing Market: What the Experts Think
How to decide to remodel your home or sell it
10 Easy Hacks to Save Money
360° Minute - 'The 15 Must Do’s for Fall Clean Up' 🍁 🍂
Economic Roundup October 2019
Market Movement October 2019
Fed Lowers Rate, Faces Growing Policy Divide
Make Fall Decorating Easy with 3 Inspirational Apps
Are You Ready for the ‘Black Friday’ of Real Estate?
Why an Investment Property Should Be Your First Real Estate Purchase
Is there a difference between mortgage prequalification and preapproval?
Should You Pay Off Your Mortgage Before You Retire?
How do first-time home-buyer mortgages differ from other mortgage types?
Summer Is Winding Down! Is buying a new home on your agenda for this fall?
Real Estate Market Review
Fed Cuts Rate for First Time Since 2008, Markets Rattled
The Fed Cuts Rates by a quarter-percentage-point. What Now?
Click here to see ALL articles.