This entry was posted on Monday, January 8th, 2007 at 3:21 pm and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Sacramento Mortgage Rate Update
Last week’s December jobs report revealed an unexpected rise in the number of jobs created during the final month of 2006. The 167,000 increase in non-farm payrolls crushed the expected 100,000 figure, and unemployment remained at a low 4.5%. The report was an about-face from reports issued just days before.
Earlier in the week, the ADP employment report showed a surprising decline of 40,000 private sector jobs. Despite it’s spotty record since going public last April, the ADP report is considered the single most accurate predictor of the governments non-farm payroll report. A second report, The Hudson Employment Index, revealed that growing numbers of workers are unhappy with their jobs and worried about job security.
In the end, the governments strong jobs numbers suggested inflationary pressures that neutralized any hope of a Fed rate cut during the next few months. The wildly erratic headline reports have been so frequently corrected in recent months however, that many analysts simply wait for the inevitable revisions. Friday’s negative reaction in the bond market continued into today, pushing the benchmark 10 Year Note yield to 4.66%.
The benchmark 30 year fixed rate mortgage ended the day around 6%.