March ADP jobs report and mortgage rates

The ADP jobs report came in much stronger than expected.  The expectation was for 187,000 jobs created however the reading came in at 263,000 jobs created – a huge beat. This is the second month in a row that the ADP reading has been significantly higher than expectations.  February’s reading came in at 298,000 jobs created however that was just lowered to 245,000 jobs created.  It’s a bit early to tell how negatively this will affect mortgage rates and perhaps the most important news item of the day will be the Fed.  ADP Employment ReportMortgage rates, both fixed rate mortgages and adjustable rate mortgages, tend to move up when reports like the ADP jobs report come in much stronger than expected.  

That is not always the case; and just a general rule of thumb when understanding how data affects both California fixed rate mortgages and adjustable rate mortgages.  Later today we’ll have the ISM reading and as mentioned the biggest thing for the day will be the Fed.  Based on what the Fed says we may see mortgage rates move higher or lower.  ADP releases their report every month and only tracks private sector job growth.  The government report (due this Friday) covers both private and public job growth data.  The government report is seen as a more reliable report when trying to understand the current jobs picture in the United States.