The stronger than expected employment numbers pushed rates up a bit this morning. November non-farm payrolls were up 321,000, the biggest gain since January 2012. Also, upward revisions added 44,000 jobs to September and October. The unemployment rate held at 5.8%. The mortgage bond market initially plunged on the news (good economic news usually means higher rates) dropping 75 basis points. 75 basis points equates to .75 points or on a $100,000 loan $750. This afternoon the market is currently off 47 basis points so it has come back some. So, what does this mean for rates going forward?
If you follow my blog you will know that last month I predicted rates would rise over the next 6 months. These numbers are a good indication of that coming to fruition. I see an overall steady improvement in the economic numbers as we go into 2015. There might be a down month but overall I see the economy improving and rates continuing to increase. Not dramatically but I do see an increase.
Stay tuned. I will continue to keep you updated.