Rates Move Lower On July Employment Report

Interest rates moved lower on today’s weaker than expected July employment report. Non-Farm Payrolls grew by 113,000 on expectations of 145,000 new jobs. The unemployment rate increased from 4.6% in June to 4.8% in July. Average Hourly Earnings increased 0.4%, slightly more than expected. Many market analysts now believe that the Fed will pause in its tightening cycle next week for the first time in two years.

Other economic news of note this past week included the Chicago Purchasing Managers Index which was slightly stronger than expected. June Personal Income and Spending were in line with forecasts. The Personal Consumption Expenditures Index increased 0.2%. The ISM Manufacturing Index was slightly stronger than expected and the ISM Services Sector Index was slightly weaker than expected. Crude oil futures are currently trading at just under $75 per barrel.

Next week look toward Tuesday’s FOMC announcement on monetary policy, Thursday’s International Trade and Friday’s Retail Sales reports as potential market moving events.

Current rate for a 30 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 15 year fixed loan is 6.25% 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 6.50% 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