Mortgage Rates Make Big Improvement After March 2013 Jobs Report
The March 2013 Non-Farm Payrolls report fell short of analyst expectations, showing 88,000 net new jobs created last month.
Wall Street had expected a print of 190,000 net new jobs for last month and the negative surprise has mortgage rates improving.
Within minutes of the Non-Farm Payrolls report's release, mortgage rates of all types -- conventional, FHA, VA, USDA and jumbo -- began to move lower.
It's a good day to lock a mortgage rate.
5.47 Million Jobs Created Since 2010
Each month, on the first Friday, the government's Bureau of Labor Statistics (BLS) department releases its Non-Farm Payrolls report.
More commonly called "the jobs report", the BLS details U.S. employment, sector-by-sector. The report also tallies the national Unemployment Rate.
In March, the U.S. economy added eighty-eight thousand net new jobs -- a shortfall of more than one-hundred thousand jobs as compared to analyst expectations. The headline figure isn't as "bad" as it otherwise appears, however. The BLS also announced upwards revisions to its January 2013 and February 2013 jobs tally in the amount of sixty-one thousand jobs.
Adding back those revisions, March job creation reached 149,000 last month. The national Unemployment Rate, dropped one-tenth of a percentage point to 7.6% -- its lowest since January 2009.
Mortgage bonds are improving after the report, pushing mortgage rates down.
Mortgage Rates Remain Near 3.5%
The good news for rate shoppers and spring home buyers is that national mortgage rates remain very, very low.
Freddie Mac's weekly mortgage rate survey shows the average 30-year fixed rate mortgage at 3.54% for borrowers willing to pay 0.8 discount points plus a full set of closing costs. The 15-year fixed rate mortgage is down to 2.74% with 0.7 accompanying discount points.
The market is ripe for locking. Several forces have combined to push mortgage rates down -- at least temporarily.
- The Cyprus banking bailout has sparked concern within the Eurozone
- Japan plans to add inflation pressure into its domestic economy
- The U.S. economy is recovering slowly and steadily, which attracts investment
And, of course, the jobs market gains traction. Since 2010, 5.47 million jobs have been added to the U.S. economy and job growth has not since September 2010 has monthly job growth been negative. That's a streak of 30 straight months. Plus, unemployment continues to improve.
Mortgage rates are low today. They won't stay low forever. Get started with a rate quote.