Strong Jobs Market Boosts Equities
A better-than-expected jobs report had a strong negative impact on both the bond and equity markets Friday morning, with the initial market reaction suggesting that good news might be bad news for bonds. However, a closer examination of the jobs report data reveals that wage increases are flattening, and hours worked are declining. This likely explains the subsequent market reversal, with mortgage bond yields still up but not as much, and the equity markets rallying. On the downside, the probability of yet another rate hike increased after the latest jobs report, with the odds of a hike rising from last week’s 18% to around 30%.
It’s almost as if the WSJ has been reading our blog (joking), as Friday’s paper featured an article explaining the importance of shopping for a mortgage in today’s lending market. Banks are now offering varying interest rates, with differences of up to 1%. This aligns perfectly with what we do at Insignia Mortgage. Our experienced and dedicated broker team actively seeks the best execution for each deal by matching a borrower’s financials with the best-priced lender. Given our expertise in reviewing complex financials, we’ve noticed significant variations between lenders. Our hard work continues to pay off as clients trust us to secure their unique mortgages.
Look out for a recap of our recent loan successes for more insight into the complexity of our client financial scenarios. While the market may be volatile, our commitment to creating individualized lending solutions remains steadfast.