ADP jobs report falls short...
Posted May 2, 2012
The Markets giveth and the Markets taketh away... Yesterday, the ISM report was a bright spot of data which pushed Treasury Yields to 1.96% by the end of the day. This morning the ADP Employment Report came in much weaker than expected at 119,000 versus 186,000 and because of the significant decline, the 10 Year Yield dropped back to 1.90. As indicated earlier in the week, the jobs picture has become much more subdued recently, and as is typically the case, the ADP report acts as a potential prelude to the monthly Employment Report which we’ll receive this Friday. Continued labor weakness coupled with other areas of economic uncertainty will provide welcomed help to Triangle Housing in terms of keeping mortgage rates, and thereby affordability at healthy levels for the foreseeable future.
Continuing the weakness trend today, the March Factory Orders Report from this morning came in at the lowest reading we’ve seen in three years.
Tomorrow brings us weekly Jobless Claims and the Preliminary Q1 Productivity Report. Continued weakness in either of those reports may help to put additional downward pressure on Mortgage Rates.