Shelter Six:  Red Hot Economic Data Pushes Mortgage Rates Higher

The economy continues to fire on all cylinders, which is great news for the future real estate sales, but not so great news for mortgage rates.

Last Wednesday, the ISM National Services Index soared to 61.8, which is the highest level recorded since tracking began in 2008.

This was followed by Friday’s Employment Report, which showed solid improvements in the labor market.

The economy has now added an astounding average of 211K workers per month so far in 2018 compared to an already very strong 182K per month last year.

The Unemployment Rate has plummeted to only 3.7%, the lowest level since 1969.

Average hourly earnings are also on the rise and were 2.8% higher than a year ago.  All of last week’s data points to a very strong economy.

Rate Update

Since it raises the outlook for future inflation, last week’s stronger than expected economic data was bad news for mortgage rates, which reached their highest levels in seven years.

This Week

The mortgage markets are closed on Monday for Columbus Day.  The biggest economic releases this week will be the CPI and JOLTS reports, both due out on Thursday.

October 8, 2018 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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