On this day in 1933 Congress enacted a joint resolution that nullified creditors ability to demand gold effectively taking the US dollar off the gold standard. Also not backed by gold (or even a government) are bitcoins. The lack of backing doesn’t seem to be impacting its value though. Had you invested $1,000 in bitcoins back in 2010 you’d have over $46 million today.
On Friday, mortgage rates hit the best levels in 5 months following the release of a weaker than expected jobs report. The monthly release showed that only 138,000 new jobs were created in May. The unemployment rate fell to 4.3% (16-year low) and wages grew modestly at 2.40%. All in all the report was deemed to be favorable for interest rates.
This week’s economic calendar is very light. The main story lines will come on Thursday when the European Central Bank has their regularly scheduled monetary policy meeting and former FBI director James Comey is scheduled to testify before a Senate Intelligence committee (CLICK HERE to learn how rates are impacted).
With a lack of significant economic data mortgage rates will likely react to the stock market and technical trading patterns. The technical signals are concerning. I will recommend maintaining a locking position.
Current Outlook: locking