As the most recent jobs report was released, mortgage rates remained stable. Only a few lenders raised rates by microscopic levels. Although this is an uncommon occurrence, it is explained by the state of current world events.
Oftentimes, the key part of gathered Employment Situation data is the top line job creation, or NFP. The average forecast for present NFP was 190,000, but actual job creation was much lower. Commonly, this is the only figure mortgage markets consider prior to lowering rates.
The unemployment rate was a bit less than expected, and wage growth was higher. These numbers were able to offset the slowed pace of job creation. Thanks to bond improvements and a drop in stocks and oil prices, the levels remained virtually unchanged.
Loan Originator Point of View
According to expert mortgage originators, the NFP report showed little change in bonds. Even though net job gains fell short, heightened hours and wages hint at signs of inflation down the road. Rates may hold steady or trend lower, but the answers rest within next week’s data.
Today’s best execution rates float between 3.625 percent and 3.75 percent for a 30-year fixed mortgage. A 15-year fixed loan is slightly better at 3.125 percent.
- The Fed increased rates back in December 2015, which implied there would a strong trend toward rate hikes.
- Since international financial markets are experiencing distress, major stocks are dropping, and investors are fleeing to the bond markets, which is keeping rates low.
- Although the Fed is beginning a hike cycle, mortgage rates may remain low as global issues push investors into safe havens. If stocks rebound, rates may soar.