Mortgage markets are making like last night's fireworks, exploding in the sky with a bang. There are three main factors pushing rates higher today:
- Bank of England raised their interest rates by 0.25% and foreshadowed future increases
- European Central Bank Chairman Jean-Claude Trichet said that inflation is "likely to rise again significantly towards the end of the year".
- The ADP National Employment Report showed 150,000 new jobs created in June, putting pressure on traders siding with the economists' predictions of 120,000 new jobs created.
Trading volume is still light and that makes rates more volatile than usual. Tomorrow's government jobs report has the potential to really shake up the markets -- for good or for bad.
