Insignia Mortgage

Market Commentary 12/8/17

dec-8-yields

Treasury yields and stocks rose Friday in response to a better than expected jobs report. The U.S. added 228,000 new jobs in November which beat economists’ forecasts of 195,000 jobs. Unemployment remained at 4.15%, while average hourly earnings rose .2%, lower than the expected .3%. Wage growth has remained elusive during this nine-year long economic expansion, and the lack of wage inflation has been a main factor in keeping interest rates lower for longer.

The Fed will speak next week with a nearly certain probability of announcing a rate increase in the overnight lending rate. The market will be closely watching how long term interest rates react to this rates increase as concerns of a flattening yield have been receiving some attention as of late.

We continue to remain biased toward higher rates and are advising clients to lock-in interest rates at these current levels.

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