Strong Jobs Report Fuels Upward Trend in Mortgage Rates
The recent jobs report came out significantly stronger than was initially expected. February experienced a payroll growth of 242k, compared to the projected 190k. Meanwhile, the national unemployment rate held at 4.9%; considering that there are more people entering the workforce, this is a favorable figure. All in all, it would seem that the economy is doing better than was indicated by the popular opinions of the past two months.
Since this employment data is one of the most important factors influencing the bond markets underlying mortgage rates, good news in the jobs report often equals bad news in the mortgage market. It is therefore that, on the fourth, we observed a moderate jump in rates. However, relative to the recent upward movement that the market has been experiencing, the move wasn’t terribly dramatic. In fact, it’s the steady upward momentum of mortgage rates that may have prevented a sharper reaction to the recent jobs report.
Many experts are surprised that rates are not higher than they are right now, and are projecting further increases in the near future. If you are looking to secure a new mortgage loan, the good money is on locking into current rates.
