Tag: Jobs report

Mortgage Rates Higher After Stronger Then Expected Jobs Report

Jobs Report increases mortgage rates.The all important Jobs report just recently came out and beat Wall Street’s expectations by a large margin.  There were 195,000 new jobs last month and also more positive revisions to the last two months of reports.  This has caused the bond markets to react negatively which in turn has raised interest rates.  Some experts predict this may be the final nail in the coffin and cause rates to jump up above 5% in the near future.

2013 Jobs numbers and its overall impact to mortgage rates:

These strong job numbers which were just posted help keep in perspective just how far we have come since the great recession.  During the lowest point in the recession we had lost a staggering 7,300,000 total jobs.  This is a sobering number which takes a moment to set in.  Thankfully, we have gained back 6,300,000 of those lost jobs.  This is a positive step in the right direct and the stock markets have reacted positively to this better news.  This will definitely help our retirement account but unfortunately it will not help mortgage rates.

Typically, rates react negatively (get higher) to good news and react positively (go lower) with bad financial news.  So when the markets start to pick up steam like it now appears to be doing rates start to climb.  In other words, if you have been considering refining your home or buying but been holding out for better rates you may want to get off the fence before it is too late.  Some experts believe that rates should be even higher then what they currently are now.

The Federal Government is helping keep the rates artificially low to stimulate the economy.  The Fed is going to continue to keep them low until they feel the economy gets better.  These better job report numbers may be just the indication the Fed. needs to to take away this bond buying stimulus which ultimately will move rates up much quick then normal.

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