Mortgage interest rates are all over the place and this week they have been trending up.  The first Friday of every month the Federal government releases the Non-Farm Payroll Report, frequently called the jobs report.  This report tends to affect mortgage interest rates more than anything else.  

This week the market has been getting worse, almost like Wall Street is preparing for a strong jobs report. Over the last week, mortgage rates have increased almost 20 basis points (.20%) and are close to or over that 4% level for some 30 yr programs.  With a better than expected report, mortgage rates are expected to climb higher. With a worse than expected report, rates are likely to fall.  Based on interest rates this week, Wall Street is looking for a better than expected report!

Since 2010 about 11.1 million new jobs have been added, an average of 173,000 per week.  The jobs report is a overview of the US labor market.  It shows which areas are expanding and which are contracting.  It also shows the US employment rate.  It is a monthly report that is very important to Wall Street.  The Fed has been using the report to see how the economy is growing.

Lately the jobs report has become more important.  Since the Federal Reserve is trying to stimulate the economy, they have been watching the jobs report to see if the economy is growing.  They will continue their programs as long as they can see that they are working.

When you are buying a home or looking to refinance, this week can be very volatile in the mortgage markets!  The analysts are expecting the May numbers to show 220,000 new jobs created.  So for those that are watching interest rates, that is the number to watch for on Friday. A number lower may help lower interest rates, a number higher may cause interest rates to jump higher.

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, NMLS#150953 - Email - Website



About Leslie Vanderwerf

Currently a Branch Manager for American Mortgage and Equity Consultants, Inc., it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

Waiting periods after foreclosures, etc….

Mortgage companies will require a time period to show re-established credit after things like a bankruptcy, foreclosure and short sales.  The time periods will vary based on the type of loan and the type of derogatory item. For conventional loans, the time period for most banks are:     Foreclosure – 7 years from the date the.

Read More

Mortgage rates on the rise again…

This has been a familiar story over the last two months.  Rates were at their lowest about 11 weeks ago.  Over the last 7 days, mortgage rates have increased slightly everyday.   They are now at their highest level in about nine months. Rates will vary every day but if you are waiting for rates to.

Read More

Mortgage approval?

You have decided to buy a new home – maybe it's your first home.  What do you need for approval?  For most homebuyers, you will need some basic items.  It helps to have these items ready for your loan officer so they can give you an accurate approval. Most people will need 2 years of.

Read More