Mortgage rates reacted negatively this week to comments from Fed officials and a stronger-than-expected employment report.
Following the October meeting of the FOMC, Atlanta Fed President Dennis Lockhart said he was satisfied that Fed members agreed on the alignment of factors mandating a December rate hike but the rate hike is a possibility, not a certainty.
The Fed kept their policy unchanged at the October meeting due to below-target inflation and a lack of job growth since their previous meeting, but Friday's employment report suggested more strength than expected in the labor market.
Highlights from the October employment report included:
- A 5.0% unemployment rate, the lowest since April 2008.
- Average hourly earnings were up 0.4% and 2.5% higher than they were a year ago.
- Non-farm payrolls added 271,000 jobs in October against expectations for 190,000.
Last week in the economy:
- Mortgage rates (the national average) increased 0.12% (12 basis points).
- Both the purchase and refinance sectors of the MBA Mortgage Applications report fell 1% in the October 30 week, following weeks of volatile dips and spikes. Year-over-year the purchase index is up 20 percent.
- Initial Jobless Claims shot 16,000 higher in the October 31 week, though still very low at 276,000.
What's on the economic calendar for the week of November 9, 2015:
Thursday: MBA Mortgage Applications, Jobless Claims and JOLTS
Friday: Retail Sales and Consumer Sentiment
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