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Mark Hemingway

Daily Mortgage Market Update for August 5th

Wednesday, August 5, 2015 - Article by: Mark Hemingway - Security Financial Services, LLC - Message

The labor market suffered a minor setback today after headlines read that private employers added less jobs than was expected in July. Payroll service firm ADP reported that private employers added 185,000 jobs in July, below the 220,000 expected and down from the 229,000 created in June, which was revised lower from 237,000. And though job growth has been strong, it has been moderating since the beginning of the year, noted Mark Zandi, chief economist at Moody's Analytics Inc. The ADP report comes ahead of Friday's government Jobs Report where it is expected that 220,000 were created in both the private and public sector.The Institute for Supply Management (ISM) reported that its ISM Service Index (non-manufacturing) jumped to 60.3 in July, up from the June reading of 56 and above the 56.3 expected. The 60.3 was the best reading in 10 years. All of the components within the index showed strong gains with new orders and employment the standouts. Most respondents continue to have a positive outlook on business conditions and the overall economy. A reading above 50 indicates the non-manufacturing sector economy is generally expanding; below 50 indicates it is generally contracting.Home loan rates edged lower in the latest survey from the Mortgage Bankers Association (MBA) falling to 4.13% from 4.17% in the previous week with .034 points on top of the rate. The recent rise in Bond prices was the catalyst behind the push lower in rates, as mortgage rates are generally tied to the ebb and flow of Bond market fluctuations. Within the data it also showed that the MBA's Market Composite Index, a measure of total loan application volume, jumped 4.7%, while the refinance index was up 6%, purchase index gained 3.3%.

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