Mortgage Rates May Have Bottomed; Jobs Report Expects 60,000 Net New Jobs

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Conforming, FHA and USDA mortgage rates are rising. Will Friday's jobs report make them spike?

Mortgage Rates Follow Jobs

At 8:30 AM ET Friday, the government will release its Non-Farm Payrolls report for September. Sector-by-sector, the Bureau of Labor Statistics report tallies job growth and creation nationwide, and calculates the U.S. Unemployment Rate.

Last month, exactly zero net jobs were created, the government said.

This month, economists expect a net 60,000 jobs created. If the estimates are accurate, the year-to-date job creation tally will rise to 899,000.

Between 2008-2009, 7.3 million jobs were lost.

Depending on where the actual jobs data falls, though, FHA and conforming mortgage rates are bound to change. Likely by a lot.

The jobs report swings a big bat in the mortgage market.

Click here to get today's rate quote.

More People Working, More People Spending

It's not tough to connect the health of the jobs market to the strength mortgage market. As jobs go, so goes the economy, and when the economy is sailing, mortgage markets tend to lose.

This is because more working Americans creates a stronger economic base, which pushes investors into risky asset classes such as equities. Bonds thrive in uncertain, weak economies.

Job growth has far-reaching influence within the U.S. economy :

1. When more people work, consumer spending grows and business thrive
2. When more people work, governments collect more taxes and fund projects
3. When more people work, household savings increase and confidence grows

These are all key elements for an improving economy. They can also lead to higher mortgages.

Remove Your Risk. Lock Your Rate Today.

If you're shopping for a loan, rates have been climbing. And tomorrow's jobs report poses an additional risk. If the actual number of jobs created exceeds the consensus estimate, mortgage rates will climb.

It's often better to be safe than sorry -- especially when it comes to mortgage rates.

Click here to get today's rate quote.