With another tepid jobs number, one would think that the mortgage market would have not reflected too much change. However, other factors played a role in the weeks mortgage rates. First, on Thursday, September 6 the European Central Bank (ECB) annouced a program to help stem the bleeding in their financial markets. The result of this was that US mortgage rates ticked up slightly higher. This was largely due to the fact that there was no cap on this program and it helped instill some confidence with investors who felt that they no longer needed the security of bonds and ran to invest in more traditional equities.
However, this wasn’t the first news of the week, there seemed to be some upward pressure in the US economy when Gallup announced that US consumer spending was actually up: In fact, it was up to levels not seen in nearly four years. The uptick in the mortgage market wouldn’t hold however, since the US jobs report which came out on Friday showed only modest increases in employment, much lower than anticipated.
The 96,000 new jobs (lower than the anticipated 130,000) had some hidden warning signs — manufacturing jobs were down 15,000 and public sector jobs: Those including firefighters, teachers and police officers continue to show a decline. For those who are considering buying a home or refinancing, the mortgage market continues to show slighly lower rates. Upcoming mortgage rate changes will be impacted by other news including the Federal Reserve committing to auction $66 billion in 3-yr, 10-yr, and 30-yr securities next week.
Overall for investors, the market is very favorablel – gold prices continue to rise and the stock market is at its highest level since December of 2007. Additional jobs numbers won’t be a factor for an other four weeks, but there is still the anticipation of the Fed taking part in additional quantitative easing (QE3) which will have an impact on the mortgage market.
Disclaimer: This mortgage market update article is for informational puposes only. Do not use this update as mortgage rate lock guidance. NMLS #849597