This past week helped mortgage rates a bit. The bond market strengthened with employment numbers which helped interest rates a bit.
The 10 year treasury yield fell to around 4.14% which is down from last week’s average of 4.24%.
The January Non-Farm payroll report came in stronger than expected. The report showed 130,000 new jobs, the expectation was 70,000 new jobs. That hurt the bond market. The unemployment rate declined slightly to 4.3%, down just a little bit. The ADP employment numbers for last week showed an average of 6,500 new jobs over the last four weeks, which is on pace for about 26,000 new jobs. That number is much different from the Non-Farm payroll numbers. There are many investors that think this report will be adjusted down and so the bond market improved today after investors looked at the report.
The other piece that is affecting interest rates is the discussion between the US and Iran. There is concern that the geopolitical tensions could disrupt Middle East exports and push oil and gas prices higher. That could affect inflation and rate expectations.
One other note for those that are first time homebuyers, Fannie Mae and Freddie Mac are offering $2500 in a grant to those that meet qualifications. Income has to be under 50% AMI for the property location. At least one homebuyer must be a first time homebuyer. This money does not have to be paid back. If you put between 3-5% down, you may also qualify for our Smart Start down payment program. This can give you up to $5250 in a grant.
Interest rates are slowly coming down and that will help those that are looking at new homes or maybe refinancing.
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
