[Mortgage Minute] Week of Nov. 30, 2015

Friday’s Job Report Could Seal December Rate Hike        

After a quiet Thanksgiving week with minimal rate movement, things will heat up with much anticipated jobs report Friday. Most observers believe only a disastrously weak November nonfarm report (less than 150,000 new jobs), together with substantial downward revisions to the October and September figures, stands in the way of the first benchmark short-term interest rate hike from the Fed since June 2006.

The 25 basis-point “bump” from Fed Chair Yellen and her fellow central bankers is currently expected to be delivered on Wednesday, December 16th.  While it is certainly possible Friday’s November headline payroll data will prove to be shockingly weak – and therefore mortgage interest rate friendly — such an outcome is not very probable.

Week Ahead

Factors: It’s pretty simple, the Friday payroll report will be the most watched event of the week.  If the number comes in within shouting distance of the expected 220k new jobs, look for rates to continue their upward trend.

Volatility:        Moderate

Trend:              Slightly Upward

 

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