This week’s focus is on Nonfarm Payrolls which gets released this Friday. Payroll gains have been firm with the unemployment rate on a downward trend, and we look to Friday’s report to provide further insight to current U.S. labor market conditions. The report is expected to show that the U.S. added an additional 235K jobs in February for the 12th consecutive month above 200K. In today’s data, Personal Income increased $50.8 Billion (+0.3%), Disposable Personal Income (DPI) increased $52.6 Billion (+0.4%), and Personal Consumption Expenditures (PCE) declined $18.9 Billion (-0.2%) in January. In December, personal income increased $45.3 Billion (+0.3%), DPI increased $37.3 Billion (+0.3%), and PCE decreased $35.7 Billion (-0.3%). Wages and salaries increased $42.4 Billion in January, following an $8.6 Billion advance in December. Instead of spending this new found income, household are allocating more toward savings, with the personal savings rate up +5.5% in January vs. 5.0% prior. Inflation remains low, and well below the Fed's 2% target, adding impetus to the argument that the Fed will likely avoid an early rate hike. Treasuries yields rose this morning following today’s data dump pushing yield on the 10-Year note back above the 2% mark. The curve has bull steepened with 2s10s up +2.1 bps.
GNMA Issuer Fannie Mae and Freddie Mac Direct Lender Licensed throughout the U.S. and Puerto Rico Privately Held Mortgage Bank for Over 32 Years Excellent Underwriting / Funding Turn Times
This information is provided solely for informational use and is not intended as a trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not liscensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, price, guidelines, fees, costs, terms and conditions are subject to change without notice.