Friday, August 4, 2017

Rates Tick Up After Jobs Report; Fannie and Freddie Echo FHFA's Profit Sweep Concerns

While it was far from a dramatic move mortgage rates ticked slightly higher after today's Employment Situation data, otherwise known simply as "the jobs report" or NFP (due to its headline component: nonfarm payrolls). On average, over time, NFP is the biggest market mover there is when it comes to economic reports. It's no surprise to see bond markets (which underlie mortgage rates) react. That said, today's NFP didn't necessarily warrant a reaction. Or rather, today's numbers could have gone either way based on past precedent. The problem today was that market participants were generally positioned for the report to come out slightly weaker than forecast. Instead, it came out slightly stronger (209k new payrolls were added in July versus estimates of 183k). That provided quick and easy justification

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/4/2923

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