Introduction
With a heavy lineup of economic data scheduled for release this week, we’re keeping a close eye on the potential impact on mortgage rates. At Better Rate Mortgage, we know staying informed helps you and your clients make the best decisions in an ever-changing market. Read on for a breakdown of this week’s major reports and what they mean for rates.
Tuesday: JOLTS (Job Openings and Labor Turnover Survey)
The JOLTS report provides insight into the number of job openings in the economy. Fewer job openings can signal reduced wage pressures, which helps curb inflation. As a reminder, inflation is the primary opponent of fixed-rate instruments like mortgage-backed securities. When inflation is high, mortgage rates tend to rise, and when it decreases, rates can see relief. Understanding this relationship is key to predicting rate trends.
Looking for more insights into mortgage rates? Contact us at Better Rate Mortgage for expert guidance tailored to you.
Wednesday: ADP Employment Report and Gross Domestic Product (GDP)
The ADP report gauges private-sector employment changes, providing a preview of the broader labor market. In tandem, the GDP report shows overall economic growth. High employment numbers and strong GDP growth can lead to higher mortgage rates as they indicate economic strength and potential inflationary pressures. If GDP expansion is moderate, it could support stable or even lower rates.
Curious about how these trends could affect your mortgage rate? Check out our rate options and see how we can help you make the most of the current market.
Thursday: Core PCE and Employment Costs
The Core Personal Consumption Expenditures (PCE) index is a critical inflation measure, reflecting the prices people pay for goods and services. It’s a significant component of GDP and an inflation indicator closely watched by the Federal Reserve. Higher employment costs, as reported alongside PCE, can drive inflation further. If inflation pressures ease, rates could benefit.
Stay ahead of inflation’s impact on mortgage rates. Let’s discuss your mortgage needs and find the best options for you.
Friday: Bureau of Labor Statistics (BLS) Employment Report and ISM Manufacturing PMI
The BLS employment report is one of the month’s most impactful data points, with job creation numbers, unemployment rates, and average hourly earnings all influencing mortgage rates. The forecast is for 123,000 new jobs; a lower figure could be favorable for bonds, potentially leading to lower mortgage rates. ISM Manufacturing PMI, which surveys over 400 purchasing and supply executives, also sheds light on economic momentum. If the report indicates slower growth, it could help rates ease.
Are you ready to take advantage of favorable rates? Get started with Better Rate Mortgage today and let us guide you to the best solution.
Conclusion
As these critical economic reports unfold, mortgage rates could shift accordingly. At Better Rate Mortgage, we’re dedicated to providing you with the latest market insights and competitive rates. If you have questions about how this week’s data might impact your clients or your own mortgage plans, reach out—we’re here to help you stay ahead.
Contact Better Rate Mortgage today to learn more about how these market factors influence rates and how we can help secure the best financing option for you.
Sean Zalmanoff 10/28/24
