Mortgage Rates End Lower After Jobs Report
Mortgage rates finally took a step in the right direction this
week after what seemed like a constant movement of them heading up this
year. What usually is a market shaker
did not materialize this morning when we got the monthly jobs
report of which overall came in below expectations. This helped keep rates on the low side for the
week, but still has kept them in the narrow range to hope that there is more of
a direction to move lower.
Where
Are Mortgage Rates Going?
>>>
Rates
have moved lower than in recent weeks
Today the employment situation for April got released
(aka The Jobs Report). That report comes
out the first Friday every month and is one of the most closely watched reports
that can shake the markets. After a
disappointing headline reading last month analysts were calling for the labor
market to bounce back, but it did not as it was below the expectations at 164K,
short of the 191K it was hoping for. Average
hourly earnings also missed the mark, coming in one tenth below what analysts
had called for at 0.1%.
Jobs still strong, wages so far slower than most
believed. The consensus after a full day of assessing the totality of the
report is mostly a one-off report regarding job gains, and many interviewed on
the media are dismissing the drop in average hourly earnings both monthly and
annually.
Mortgage rates typically move higher when positive
economic data comes out so a weaker report such as this one did keep rates from
spiking. This was good news for anyone looking to buy or refinance right now.
After reviewing the Freddie Mac PMMS this week, it was
interesting to read that “while mortgage rates have increased by one-half of a
percentage point so far this year, it has not impacted home purchase demand,
which continues to grow this spring. The observed buyer resiliency in the face
of higher rates reflects the healthy economy and strong consumer confidence,
which are important drivers of home sales activity.”
Rate/Float
Recommendation
>>> Lock
now before rates move higher
Mortgage rates held steady this week which is great
news for anyone looking to buy a home or refinance their current mortgage. It
is possible that mortgage rates stay in a tight range for a while but it does
seem as though there is a greater likelihood of them rising than falling.
If you want to avoid the risk of locking in after this
happens, you should lock in your rate now. Despite what happens in the
near-term, mortgage rates are still expected to move higher in the long run so
locking in a rate sooner rather than later remains the smart decision for most
borrowers. If you have any further questions, give us a call or visit our
website at Call The Money Man.
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