This morning’s March employment report shocked markets with its weakness. Non-farm jobs were widely expected to have increased over 200K, but were reported higher by just 120K. The unemployment rates declined to 8.2% from 8.3% but this decline likely suggests fewer people are looking for jobs. This surprise came after the ADP report released earlier in the week showed an increase of 209k jobs.
Mortgage and Treasury markets rallied immediately after the release reversing at least temporarily, sentiment that many economists had that we were nearing the end of record low rates. The weak report along with fears in Europe brings bag the perception that there may be additional action take by the Fed to keep Seattle mortgage rates low.
To see mortgage rates and closing costs based on your current situation visit our Interest Rate Quote tool on the Sammamish Mortgage website. Bond markets although closing early today have already seen the improvement while the stock market is closed for the Good Friday Holiday so most of the market reaction will be seen on Monday. Today’s improvement in the bond and mortgage markets turned most of the technicals from generally flat to positive. When markets open on Monday we expect the recent increase in volatility to continue so we will see if this rate improve lasts or is short lived.