Weekly Update

The Fed met last week and, as expected, they continue to “taper” their treasury and bond-buying endeavors.

At this time last year, the Fed was buying $85 billion a month in treasuries and mortgage bonds. They are now purchasing only $45 billion a month.

Last week’s Jobs Report was a mixed bag. Over 288,000 jobs were created in April, which is good news, but the Labor Force Participation Rate fell to a 35-year low. This is a measurement of how many working-age Americans are employed or searching for work.

Finally, the first assessment of the 1st Quarter GDP was released and showed the economy grew only by 0.1 percent. It’s important to note that severe winter weather may have played a role in this figure.

Bottom Line for Mortgages:
Rates improved at the tail end of last week on the mixed economic news.


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