Important Fed Meeting & Jobs Report This Week

This week’s Fed Meeting is taking center stage as a driver of the direction of markets and mortgage rates. As a move to combat inflation, the Fed is anticipated to raise the Fed Funds Rate (the lending rate it charges banks) by .50 percent. This will likely ripple through the lending and investment markets. To what extent, we’ll have to wait and see as much of the reaction may have already happened just based on the ‘expectation.’

As for the housing market, Freddie Mac is reporting that home price growth and the increase in mortgage rates over the past weeks is now showing up in data as affecting home purchase demand. This is good news for those that have been sitting on the sidelines waiting for the housing frenzy to settle some.

And savvy homebuyers (like you!) know that, yes, despite increases in mortgage rates, we still have lots of options to keep rates lower and affordability higher – like considering adjustable-rate mortgages or planning to refinance when rates drop again. So, if you’re ready to hop back into the housing market, let’s take a look at your options! Reach out to me – either reply to this email or call/text me at 818.307.6072 – and let’s talk about your options.

As for what else I’m watching in markets this week…

Monday’s report on Construction Spending revealed that rising costs of financing have begun to show up in what builders are spending. After February’s 0.5 percent rise, forecasters predicted a 0.8 percent gain for March but the actual was much lower at 0.1 percent.

Wednesday is a big day with the first of the employment reports coming out and the adjournment of the Fed Meeting. The consensus forecast for ADP’s April estimate is 398,000. Looking back at March, ADP’s estimate for substantial growth of 455,000 in private payrolls compared very closely with actual growth of 426,000 in the government’s data.

A 400,000 rise is predicted for the nation’s job growth in April which would compare with a three-month average gain of 562,000. Average hourly earnings are expected to rise 0.4 percent on the month matching a 0.4 percent rise in March. This annual rate is expected to edge 1 tenth lower to 5.5 percent.

The unemployment rate is expected to remain steady at 3.6 percent as is the Workforce Participation Rate at 62.4 percent.

I will keep an eye on all the developments for you and be sure to visit us on social media for the latest updates.