Well, last week was busy for economic news, and it had a significant impact on mortgage rates. Let’s break down the reports from August 26th to August 30th:
- Initial Jobless Claims: This report showed a slight increase in the number of people filing for unemployment benefits. While it wasn’t a major surge, it did suggest a bit of cooling in the labor market. This generally leads to a slight decrease in mortgage rates.
- GDP Growth: The second quarter GDP growth rate came in a bit lower than expected. This indicates that the economy is slowing down. When the economy slows, the Federal Reserve is less likely to raise interest rates, which can lead to lower mortgage rates.
- Personal Consumption Expenditure (PCE): PCE, which is a measure of inflation, rose less than anticipated. This is good news for the economy and suggests that inflation is starting to come under control. When inflation is lower, the Fed is less likely to raise interest rates, which can lead to lower mortgage rates.
Overall, the economic reports from the past week have been generally positive for mortgage rates. They suggest that the economy is slowing down and that inflation is coming under control. This has led to a slight decrease in mortgage rates.
Now, let’s look at the week of September 2nd to September 6th:
- Nonfarm Payrolls: This is the most important economic report of the month. It shows the number of jobs created or lost in the economy. If the report shows strong job growth, it could lead to higher interest rates. However, if the report shows weak job growth, it could lead to lower interest rates.
- ISM Manufacturing Index: This index measures the health of the manufacturing sector. A strong reading could suggest that the economy is growing, which could lead to higher interest rates. A weak reading could suggest that the economy is slowing, which could lead to lower interest rates.
- ADP Employment Report: This report provides a preview of the nonfarm payrolls report. It can give investors a sense of how the job market is doing.
So, the economic reports for the upcoming week could have a significant impact on mortgage rates. If the reports are positive, we could see a slight increase in rates. If the reports are negative, we could see a slight decrease in rates.
Fun Fact about Labor Day: Labor Day is a holiday celebrated in the United States on the first Monday of September to honor the American labor movement and the contributions of workers to the country. It’s a great time for barbecues, picnics, and enjoying the last days of summer.