Mortgage Rates Unexpectedly Spike On April Jobs Numbers, Jobless Rate
Mortgage rates are rising.
The April Non-Farm Payrolls report beat Wall Street expectations, and the government upwardly revised results from February and March.
Just one day after Freddie Mac reported near-lifetime lows, U.S. mortgage rates are, once again, reversing higher.
5.7 Million Jobs Created Since January 2010
Each month, on the first Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called the "jobs reports", Non-Farm Payrolls details the employment situation of the United States, summarizing by sector.
In April 2013, the U.S. economy added 165,000 net new jobs, with prior Non-Farm Payrolls data from February and March revised to show a positive net one-hundred-fourteen-thousand jobs adjustment.
As compared to 2010, there are 5.7 million more jobs in the U.S. economy, which represents more than 3 of every 4 jobs lost between 2008-2009.
In addition, the government reported that the U.S. jobless rate dropped to 7.5% in April -- the lowest mark in 53 months.
Job Creation Pushes Mortgage Rates Northward
A weak economy contributed to low mortgage rates between 2009-2011. In makes sense, then, that mortgage rates should rise when the economy moves to recover.
Immediately following the release of today's jobs report release, mortgage markets sold-off. Within seconds, mortgage bonds moved enough to send rates +0.125 percent. This happened because strong job growth supports broad economic growth, which makes Wall Street feel better about "risk".
Bond markets represent "safety". When Wall Street chases risk, rates often rise.
FHA mortgage rates, conforming mortgage rates, and jumbo mortgage rates are all higher today and are expected to remain elevated over the next week, at least.
If you're actively shopping for a mortgage, it may be prudent to ask your bank for a mortgage rate commitment.
What Are Today's Mortgage Rates?
Mortgage rates moved higher today, and are elevated as compared to their levels of earlier this week. As compared to last month (and last decade), however, they're downright cheap. Mortgage rates are relative and today's rates -- although higher -- remain terrific.
See today's mortgage rates and get moving on your closing. Get started online now.