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.