BE PREPARED for Tomorrow's Mortgage News! Mortgage Interest Rates could change - A LOT!

By
Mortgage and Lending with Fairway Independent Mortgage Corp Louisiana NMLS#2289 Equal Housing Lender NMLS 69996

 

Friday morning, at 8:30 AM ET, the Bureau of Labor Statistics releases its June Non-Farm Payrolls report.

If you or your client is currently shopping for a mortgage, or maybe even floating a mortgage interest rate, be prepared!

Mortgage rates can change following the monthly report's release. Often, by a lot!!!

More commonly called "the jobs report", Non-Farm Payrolls reports on the U.S. workforce by sector, summarizing its findings in terms of total workforce size, and as a national Unemployment Rate. Jobs are considered a keystone in the continuing U.S. economic recovery.

 

 

More working Americans means:

  1. More consumer spending, a boost to businesses
  2. More tax collection, a boost to governments
  3. More personal savings, a boost to households

For June, analysts expect the government to report 80,000 net new jobs created, and no change in the 9.1% Unemployment Rate.

 

U.S. job growth since 2000

 

Although these figures are slightly below than what can be considered "strong growth", that's not what should concern Bossier City rate shoppers. Mortgage markets react to a deviation from estimates more than to the actual results themselves.

This is because Wall Street placed bets in advance of the jobs report's release. If jobs growth tallies more than 80,000, therefore, it signals better news for the economy than what was expected. This will push banks and investors towards equities, and away from bonds -- including the mortgage-backed kind.

With less demand for mortgage bonds, mortgage rates will rise.

Conversely, if jobs growth is less than 80,000, mortgage rates should fall.

Mortgage rates remain near their lows for the year, but if the June Non-Farm Payrolls report beats estimates of 80,000 jobs made in June, look for mortgage rates to spike.

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Louise G. Thaxton NMLS #69996, VA Home Loan Expert

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Fairway Independent Mortgage Corp NMLS #2289

Phone: 866-960-9115  Email: lgthaxton@fairwaymc.com

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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Louise, I really have issues with Wall Street determining how the market is going to go based on new that is to come out from another agency. Nothing seems natural about the process.

Jul 07, 2011 08:46 AM #1
Rainer
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Louise Thaxton NMLS 69996
Fairway Independent Mortgage Corp Louisiana NMLS#2289 Equal Housing Lender - Leesville, LA
Military Mtg Specialist - 866-960-9115 VA FHA USDA

AMEN, sister!  I couldn't agree with you more! 

Jul 07, 2011 09:19 AM #2
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Rainer
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Military Mtg Specialist - 866-960-9115 VA FHA USDA
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