Mortgage rates improved in the last week of 2016 as equity markets pulled back from recent highs when the Dow Jones Industrial Average failed to break 20,000 for the first time, despite coming very close the week prior.
The holiday shortened week ahead will have plenty of data for markets to digest, with Friday’s Employment Report the most important, as usual. Fed watchers continue to price in more rate hikes for 2017, with Fed Funds futures now trading at a 12.4% chance the next increase will be in February, with March at 34.8% and May at 47.8%. Most now believe that the Fed will increase rates twice this year as inflation projections continue to increase amidst continuing improvements in the labor market.
Economic Calendar for the week of 01/03/2017 to 01/06/2017:
Tuesday: ISM Manufacturing, Construction Spending
Wednesday: MBA Mortgage Applications, FOMC minutes from the December meeting
Thursday: ADP Employment Change, ISM Services, Initial Jobless Claims, Continuing Claims
Friday: Non-Farm Payrolls, Unemployment Rate, Trade Balance, Factory Orders, Durable Goods Orders
The holiday shortened week ahead will have plenty of data for markets to digest, with Friday’s Employment Report the most important, as usual. Fed watchers continue to price in more rate hikes for 2017, with Fed Funds futures now trading at a 12.4% chance the next increase will be in February, with March at 34.8% and May at 47.8%. Most now believe that the Fed will increase rates twice this year as inflation projections continue to increase amidst continuing improvements in the labor market.
Economic Calendar for the week of 01/03/2017 to 01/06/2017:
Tuesday: ISM Manufacturing, Construction Spending
Wednesday: MBA Mortgage Applications, FOMC minutes from the December meeting
Thursday: ADP Employment Change, ISM Services, Initial Jobless Claims, Continuing Claims
Friday: Non-Farm Payrolls, Unemployment Rate, Trade Balance, Factory Orders, Durable Goods Orders
