Mortgage rates worsened by ~.125% across the board on Friday following the release of a better than expected jobs report (CLICK HERE to understand why).
In case you missed it the employment report showed 295,000 new jobs were created during the month of February and the unemployment rate ticked lower to 5.5%. The report shows continued strength in the labor market and puts additional pressure on the Fed to consider hiking short-term rates later this year. I still believe that lower oil prices will eventually curb employment growth but for now the economy keeps churning.
This week’s economic calendar is fairly light with the highlights coming Thursday (Retail Sales) and Friday (Producer Price Index & consumer sentiment).
From a technical perspective it appears that the damage has been done in the near term. Yields are trying to improve after spiking Friday so we’ll float today to see if we can see things reverse.
Current Outlook: floating