Mortgage Rate Update January 5, 2011

Posted on by Evan in Rate Update

Mortgage rates are priced worse this morning.

This morning’s jobs report from the payroll company ADP showed robust hiring for the month of December.  According to the report 297,000 news jobs were created in the private sector.  This figure is well above forecasts and has analysts revising expectations for Friday’s jobs report from the Bureau of Labor Statistics.  The ADP report has a mixed history of foreshadowing the government report but in the meantime rates are headed higher.

In a separate report the Institute for Supply Management’s monthly read on business activity in the service sector showed better than expected growth.  Both reports are pressuring rates higher.

The next two days bring additional reads on the employment picture.  Tomorrow we’ll see jobless claims numbers and on Friday the all-important jobs report.  Based on today’s figure I am recommending a locking position.

Current outlook: locking