Shelter Six:  Rates Hold Steady Despite Strong Jobs Report

June 7, 2021 by · Leave a Comment 

The economy gained 559K jobs in May, a little less than expected but more than double the level from April.

The Unemployment Rate is now down to 5.8% nationally.

Average Hourly Earnings, an indicator of wage growth, were a very strong 2% higher than a year ago.

Even with May’s solid job gains, the economy still has about 7M jobs fewer than it did before the pandemic, which is why the Fed has been moving slowly to tighten monetary policy.

The Fed meets again next week and there is concern that there will be talk of slowing down the level of bond purchases, which could cause rates to move up quickly.

One other economic report worth mentioning, the National Services Index increased to the strongest level on record last week.

Rate Update

Mortgage rates continue to hold steady. Mortgage News Daily’s Purchase 30-Year Fixed-Rate starts this week at 3.13%.

This Week

The Consumer Price Index (CPI) is due out Thursday. CPI is a widely followed monthly inflation report that looks at the price change for goods and services.