The ADP jobs report for August 2015 shows 191,000 jobs added but investors expected the addition of 201,000 jobs.   I don’t think the FED will increase rates this month.  Economic data indicates an economy that is luke warm at best.  Think of raising the rate as a pot of water that is about to boil over.  Raising the rate cools it down but I don’t think the water is close to boiling yet.

The FED raising rate going up or down does not necessarily mean mortgage rates will be impacted directly.  Historically, when the stock market goes down, as it has over the last week, then mortgage rates follow suit.  Investors turn to bonds or mortgage backed securities for a positive return on their assets.  This has not been the case.

The leading world economies all seem to be in currency devaluation spiral and there just seems to be no end in sight.  I am hopeful that mortgage rates will dip a little after everyone sees the FED is not in a position to raise rates.  That is my opinion.

Economic Calendar

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