Three months in a row we have seen the unemployment rate drop for us non-farm payrolls. According to this morning’s jobs report we are now under 9% unemployment rates at 8.9%. Employers added 192,000 jobs in the last month alone with manufacturing, business, education and healthcare. This is the lowest unemployment rate since April of 2009. The jump is the biggest monthly raise in job numbers since May 2010.
Analysts agree that the economy is on its way to recovery and the unemployment rate will not rise again to 10% in the foreseeable future. The growth will be credited to manufacturing and middle income opportunities for the auto industry and related industries as we see the economy slowly recover to a point it was a few years ago.
In terms of mortgage rates, this positive growth will most likely attract more money to the stock market with the Dow Jones Industrial Average futures up 1.59% at 12,258.20 this morning at 8:45 AM. The 10 year treasury note is also ticking up at 3.57. Experts report that there should not be a large change in mortgage rates because the market expected these numbers and made corrections in prior days.
Mortgage rates should start slightly higher than yesterday. If you are in the market for a mortgage to refinance your home or purchase a new home I would recommend locking your interest rate. These positive jobs numbers show opportunity for future recovery of the stock markets which will reflect negatively on mortgage rates.