John's Finance Corner: Jobs Week Recap
This past Jobs Week brought us a mix of employment data that stirred both excitement and concern among investors and the housing market. Let me break down the main reports and what they mean for mortgage rates.
**BLS Report:**
In January, we saw 143,000 new jobs added, which was below the expected 170,000. However, there was good news with the upward revisions for November and December, adding an extra 100,000 jobs. Additionally, the unemployment rate saw a slight decline from 4.1% to 4.0%.
**ADP Report:**
The private sector outperformed expectations, adding 183,000 jobs in January compared to the forecasted 150,000. Similar to the BLS report, December's job numbers were revised higher, from 122,000 to 176,000.
**JOLTS Report:**
The Job Openings and Labor Turnover Survey showed a significant drop in job openings, falling from 8.156 million in November to 7.6 million in December. This decline was the lowest in four years, with the most substantial decreases in finance, professional services, healthcare, and construction.
**Market Reactions:**
Job data is crucial for investors in both the stock and bond markets. The 10-year Treasury bond serves as a reliable indicator of mortgage rate trends. After the mixed job reports, the bond market stabilized, leading to a slight decline in mortgage rates as the data was absorbed.
**Looking Ahead:**
This week, all eyes are on the upcoming CPI and PPI inflation reports. Expectations are that these reports may come back favorable, potentially lowering bond yields and subsequently, mortgage rates.
Stay tuned for more updates! Remember, if you need personalized advice or have any questions, don't hesitate to reach out to our Team. They are here to help you navigate the mortgage market with expert insights!
John Lamberg
MORTGAGE LOAN ORIGINATOR
NMLS 189233
