Employment report has mortgage rates fallingby Tim Manni
In our wraparound weekly survey of mortgage rates—the Mortgage Rates Radar—released earlier this week, HSH.com vice president Keith Gumbinger noted the importance of the March employment report on both the economy and mortgage rates:
“If the job market continues to solidify, the slowness we’re seeing lately will probably be little more than a temporary deceleration,” notes Gumbinger. “However, if hiring has slowed in March relative to the last few months, we could be in for a tepid economic period as the spring unfolds.”
According to the Bureau of Labor Statistics, 88,000 new jobs were created last month and the unemployment rate edged down to 7.6 percent. March’s employment numbers were far below the expected addition of 190,000 jobs.
Mortgage rates down
While the disappointing employment report doesn’t bode well for economic growth, it has already propelled mortgage rates lower this morning.
“Within minutes of the Non-Farm Payrolls report’s release, mortgage rates of all types — conventional, FHA, VA, USDA and jumbo — began to move lower,” wrote Dan Green, loan officer and author of TheMortgageReports. “It’s a good day to lock a mortgage rate.”
A great day to lock
Between economic concerns here and overseas, and not leaving out the ongoing Fed efforts to keep rates low, there are plenty of forces currently in play helping to keep a lid on rising mortgage rates.
Whether you’re in the market to buy a home or refinance your mortgage, the March employment report makes today a great day to lock in a rate. But don’t play the mortgage rate waiting game. Mortgage rates always rise faster than they fall, and these historically low rates won’t be around forever.