Rates Helped by Weak Jobs Report
The important monthly jobs report released on Friday was a big disappointment. Against a consensus forecast of 160K, the economy added just 38K jobs in May, which was the lowest level since September 2010.
Job gains over the past three months averaged just 116K, far below the average monthly gains of 219K over the prior twelve months. The weak report dispelled fears of any immediate fed rate hike, and mortgage rates dipped on the news.
There were few surprises resulting from Thursday’s European Central Bank (ECB) meeting. There was no change in policy. Comments from ECB President Draghi indicated that the ECB expects to maintain loose monetary policy for a long time. Investors viewed the continued dovish ECB stance as better than the alternative, and global bond yields (including mortgage bonds) moved lower after the meeting.
Factors: Fed Chair Janet Yellen will be giving a speech today. Productivity will be released on Tuesday. The JOLTS report will come out on Wednesday. JOLTS measures job openings and labor turnover rates.
For specific rates, contact your Tradition Mortgage loan officer. Check back next week for another mortgage industry update!