If you have been watching mortgage rates this week, or trying to lock a mortgage rate, you have seen a lot of movement both higher an lower. With the big monthly jobs report tomorrow you may want to consider locking your mortgage rate today as the volatility is expected to continue.
The March Non-Farm Payrolls report is due for release Friday morning and mortgage rates are expected to move. Unfortunately for the home buyers and rate shoppers of Seattle, we can’t know in which direction that will be.
If you are under contract for a new home purchase or if you would benefit from refinancing with today’s low rates, the prudent play may be to lock your mortgage rate today. To see current rates and costs specific to your situation visit our Interest Rate Quote tool for an accurate quote in seconds.
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called “the jobs report”, the release is a bona fide market-mover, month after month.
Depending on how the March jobs data reads, FHA and conforming mortgage rates could rise — or fall — by a measurable amount post-release. This is because today’s mortgage market is closely tied to the economy, and the economy is closely tied to job growth.
The connection between jobs and mortgage rates is basic.
More workers leads to higher levels of consumer spending nationwide and consumer spending accounts for the majority of the U.S. economy.
In addition, when more workers are paid, more taxes are paid, too. Local, state and federal governments collect more monies when payrolls are rising which, in turn, benefits projects that purchase new goods and services, and, in many cases, results in the hiring of additional personnel.
Job creation can be a powerful, self-reinforcing cycle.
Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered half of them. Friday, analysts expect to count another 200,000 jobs created. If the actual number of jobs created exceeds estimates, look for stock markets to gain and bond markets to lose. This leads to higher mortgage rates — especially with the Federal Reserve zeroed in on the labor market.
If the actual number of jobs created in March falls short of expectations, however, mortgage rates may fall.
Unfortunately, by the time the report is released, it will be too late to act on it. The release is made at 8:30 AM ET and bond markets will close early for Good Friday at 12:00 ET. If you have any questions or if you would like more information visit us at www.sammamishmortgage.com or call 425-401-8787 to speak with one of our experienced Mortgage Professionals.