Townstone Financial

Last week’s payroll report showed: Nonfarm payrolls surging by 254,000 in September, up from a revised 159,000 in August and better than the 150,000 Dow Jones consensus forecast. The unemployment rate falling to 4.1%, down 0.1%, as the survey of household employment showed an even stronger picture, with a gain of 430,000. Average hourly earnings increased 0.4% on the month and were up 4% from a year ago. Both figures were ahead of respective estimates. And this weekend, Goldman Sachs lowered their odds of a recession to just 15%, meaning there’s no better chance of a recession now than there is under any other normal circumstances. This might all seem like GOOD news, and it is for the country at large. But those of us in the mortgage world, see things a bit differently. Good news for jobs, payrolls, and recession risk is BAD news for those of you hoping for lower interest rates. As a result, mortgage rates are higher today vs. just a week ago and lots of people have been sitting on the sidelines watching rate