We have all been told that the job loss stats are likely to continue their downward trend for awhile, so the fact that the economy shed 539,000 jobs in April, was not a big surprise.
If there is any silver lining in that cloud, it is that it is about 10% better than predictions.
After bottoming out early last week, conforming, 30-year fixed rate mortgages rose by as much as three-quarters of a percent. So what is the connection between jobless rates and mortgage rates?
Much of human behavior..and Wall Street is no exception..is based on expectations.
People make moves with their money, including those investing in stocks and other securities, with an expectation of things to come. There was an expectation that jobless stats might be as high as 600,00 for April, so the actual number looks pretty good by comparison.
There would seem to be at least a modest recalibration of expectations going on at the moment, with some sense that there may be better consumer spending and fewer foreclosures.
Nothing is 100% in this context, but when there is a generally better sense of things to come, it may inch up mortgage rates. One lesson here, at least from where I sit in working with home buyers and sellers every day, is that "timing" a buy or sell of your home or investment property is like timing the stock market. It is far better to make those kinds of decisions with your long term plan in mind.
[The Kathy O’Neal Team serves home buyers and sellers in Northern Virginia, with special focus on Chantilly, Centreville, and the communities of the Western Fairfax region.]
Comments(0)