Mortgage Rates Inching Upward Ahead of Jobs Report

Mortgage rates have inched up a bit but continue to trade in a very tight range ahead of tomorrow's employment report. We are not likely to see a big move in rates ahead of the report. Tomorrow, however, could see some volatility if the jobs numbers are outside of expectations.

Where Are Mortgage Rates Going?                     

>>> Rates rise a bit, but could push higher after Jobs Report

Trade remains the markets’ current concern although as time lapses the trade fears will likely be balanced with more rational thinking. The US has been taken advantage of for years, now President Trump has brought it to the table as he said he would. Trade tariffs help no one, so eventually over the next year or two new trade agreements will be worked out. All the focus now on the increasing moves between the US and China yet at each escalation both countries try to leave room to work toward finding a resolve.

None of the trade tariffs are scheduled to begin for months but in an otherwise bearish equity market it does not take a lot to add more negativity. But as we have seen over the past few weeks, trade war concerns have spooked investors out of stocks and into the perceived safety of government bonds. That is what happened early on this week, keeping mortgage rates lower.

However, that trend began to reverse itself yesterday, with more money moving into stocks, pushing Treasury yields higher. The yield on the 10-year Treasury note moved up above the 2.80% mark and is now holding at 2.82% this morning. Mortgage rates typically move in the same direction as the 10-year yield, so they have increased from where they were yesterday morning.

Rate/Float Recommendation           

>>> Lock now before the possibility of any increase happens

Mortgage rates have inched up this week but could jump tomorrow after the Jobs Report.  Right now, is the time to lock for anyone looking to buy a home or refinance their current mortgage. Rates are on track to move higher as the year unfolds so most borrowers will be better off locking in a rate soon. If you want to find out how we can help you, give us a call or visit our website at Call The Money Man.