Mortgage Market News

The highly anticipated July Jobs Report was released with little fanfare on Friday as the numbers came in close to expectations. The Bureau of Labor Statistics reported that July Non-farm Payrolls came in at 215,000, below the 229,000 expected, while the May and June numbers were revised higher by a total of 13,000. Job creation has been steady in 2015, though it has been running below last year's numbers up until this point in time. Within the Jobs Report it showed that the Unemployment Rate remained at 5.3%, while wage growth edged higher.
The report bolsters the case for a September interest rate hike from the Federal Reserve due to an improving economy along with an uptick in wage growth. The Federal Reserve members will meet in mid-September to discuss monetary policy and decide if the economy is healthy enough to usher in the first interest rate hike since 2008. With the Fed Funds Rate at or near zero at the current time, the path of least resistance will be higher. The timing will be in focus … will it be next month, October or December? Most analysts are looking for a September rate hike. The Fed Funds Rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight.
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