Job Gains See a Startling Plummet Lowering Mortgage Rates
This past week marked disappointment in the labor market as job gains see a startling plummet. The major economic data accompanied by Friday's labor market report fell well below analyst expectations. As a result, mortgage rates ended the week lower.
Why Did We See Such a Shortfall in Job Gains?
The monthly employment report was highly anticipated. Without a doubt, the report saw an enormous miss, but the reason why is far less clear. In April, job gains saw a surprising downturn when the economy gained just 266,000 jobs. Thus, job gains notched far below the consensus...
This week's story focused on how the service sector growth fuels the expanding economy. Across the board, the United States realized market growth and increasing inflation. Despite the strong data, mortgage rates ended the week slightly lower.
Service Sector Growth Affects Mortgage Rates
The most significant economic report this week exceeded expectations by a considerable amount. The ISM national services index jumped from 55 to 64. This result is far above the consensus forecast of 59. It is also the highest ISM national services index level ever recorded.
The service sector accounts for more than 75% of the United States' economic activity....