Yesterday the ADP payroll report came in lower than expected, hiring only 135,000 people last month. With this data many economists are now expecting tomorrow’s non-farm payroll report to be on the lower end. This job report is one of the most important of the year because of the tapering hype from the Fed.
According to the Federal Reserve the overall economic activity increased at a modest to moderate pace in April and May. Consumer confidence is at six year high and home sales are rising. The Fed is closely watching the pace of growth of the economy in order to determine when to reduce the amount of bond purchases. Because the Fed announced they plan to begin tapering bond purchases early, the markets have been extremely volatile.
Mortgage rates have been moving higher throughout the month of May and now in June we continue to see rising rates. Mortgage rates are expected to peak in mid-June and will likely start falling by the end of the month.
Senior Loan Officer
NMLS #191784 - 1st Advantage Mortgage NMLS #2551
1st Advantage Mortgage, a Draper and Kramer company