Happy Monday! I’m back from vacation, so today I’m going to share some more of my friend Dale Lawrence‘s great mortgage advice. Reach out to Dale any time with mortgage questions!
“Mortgage Rates Higher After Jobs Report
March 4, 2016
Mortgage rates moved only moderately higher yesterday after the Employment Situation report came out much stronger than expected. The all-important jobs data showed payroll growth of 242k in February compared to a median forecast of 190k. The unemployment rate held steady at 4.9 percent despite more people joining or re-entering the labor force.
Economic data is one of the most important cues for the bond markets that underlie mortgage rates. Stronger data tends to put upward pressure on rates and yesterday was no exception. That said, yesterday’s movement wasn’t especially bigger than any other day spent moving higher over the past week. Indeed, rates were likely able to avoid a sharper move for precisely that reason: they’ve been consistently moving higher.
The most prevalent conventional 30yr fixed rate quote is now back to 3.75% after spending more than a month at 3.625%. One eight of one percent might not seem like much, but this is a jump that rates have only made a few times ever. It’s a line in the sand, of sorts, and crossing it has typically signaled more pain ahead. There’s still some time for rates to fight back, but they’d need to mount a convincing defense right away. Even if they manage to do that next week, it’s not the sort of thing that’s safe to bank on. Consider locking in rates.”