Rates Flat Over Last Week On Mixed Jobs Report

Interest rates were flat on the week. Today’s June employment report showed that non-farm payrolls grew by 121,000 on expectations that payrolls grew by 200,000. The unemployment rate remained unchanged at 4.6%. Average hourly earnings, though, increased 0.5% on expectations of 0.3% increase. This gain is the highest in five years. With job growth softening, though, increases in average hourly earnings may soften as well in coming months.

The ISM Manufacturing and Non-Manufacturing indices were released this week. Both were weaker than expected. The employment and price components of both indices declined. Crude oil futures are trading over $75 per barrel and some market analysts are expecting prices to increase to $80 per barrel. The economy shows signs of softening, yet the inflation threat from higher energy prices still remains. The Fed will have a difficult decision regarding monetary policy at their next meeting in August.

Next week look toward Wednesday’s international trade report along with Friday’s Retail Sales report as potential market moving events. Also, continue to monitor energy prices as higher prices may provide a barrier to lower interest rates.

Current rate for a 30 year fixed loan is 6.75% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 15 year fixed loan is 6.50% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 5 year ARM is 6.75% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Posting info and rates provided by:

Grant Hickman
Senior Loan Officer
Premier Mortgage Group, LLC
1844 Folsom Street Boulder, CO 80302
303-449-8855
ghickman@pmglending.com