It’s not only economic indicators that may impact the direction of mortgage rates, world events, such as what’s going on in Syria, may also cause rates to go down or up. This is because mortgage interest rates are based on mortgage backed securities (bonds) and when their is uncertainty in the world, investors may seek the safety of bonds, which tends to cause mortgage rates to improve. Remember, as the stock market improves, investors will trade the safety of bonds (like mortgage backed securities) for the potentially quicker returns found in stocks.
With this being the first week of the month, we have the Jobs Report being released on Friday morning. The Jobs Report, although sometimes controversial, is a heavy hitter when it comes to mortgage rates. The Jobs Report is intended to indicate the employment health of our economy and it also reveals potential inflation if incomes are reported as rising. Signs of inflation tends to drive mortgage rates higher. Basically, good news tends to mean mortgage rates trend higher and bad news tends to translate to improved mortgage rates (the key word here is “tends”).
Here are some scheduled economic indicators that may influence mortgage rates this week:
- Monday, September 2: Happy Labor Day! Markets closed..
- Tuesday, September 3: ISM Index
- Wednesday, September 4: Fed Beige Book
- Thursday, September 5: ADP National Employment Report; Productivity; Initial Jobless Claims; ISM Services Index
- Friday, September 6: THE JOBS REPORT
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PS: I’m not just a mortgage blogger. I have been helping people buy or refinance Pacific Northwest homes since April 2000 at Mortgage Master Service Corporation. If you would like to work with me on your next home purchase or refi for homes located anywhere in Washington state (where I’m licensed), please contact me.
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