The unemployment rate improved this morning as U.S. job market showed signs of improvement. The unemployment rate dropped to 9.40%, the lowest rate since August, 2008, according to the U.S. Labor Department. The Labor Department report released this morning reported a net loss of 247,000 jobs in July, less than expected.
What does this mean for interest rates? We may see rates inch up slightly on this news because positive economic data leads to investment into the stock market; which takes away investment in the Bond market. As we have discussed in the past, Bond market activity is directly related to the movement of interest rates.
What to loo for moving forward........ Any rate increase should not be significant, however, clients that are not yet locked and may be closing in the next couple of weeks may be at risk of a slightly higher interest rate than they expected. Rate movement may lead to an increase of .25% to .375% in the interest rates being quoted in the market place.
Real Finance Solutions is dedicated to bringing you up to date market data that will allow you to keep your clients informed of news that effects their bottom line.
No comments:
Post a Comment