Last week saw the Non-Farm Payrolls report, otherwise known at the Jobs Report, greatly disappoint with data showing that in April, 115,000 jobs were created as opposed to the 160,000 new jobs that were expected.
Since jobs are a major engine in the economy that create economic growth, any data related to the health of employment in the US has the power to move markets and mortgage rates, in this case, downward.
Expect this disappointing data to continue to put downward pressure on mortgage rates moving forward for an extended period of time. Prior to this data being released, mortgage rates had stayed in a very tight trading range in previous weeks.
Since there is little in the way of US based data coming out this week, news originating out of Europe over the weekend means Wall Street will once again be keeping eyes on Europe this week.
Once Again: Europe Back in the Forefront
This weekend saw incumbent politicians in Europe in France and Greece and replaced with less conservative, more radical parties. The austerity issues that were already prevalent combined with new governments that may not be as strict in enforcing austerity is a huge concern for market watchers.
Wall Street is keeping a close eye on all events originating out of Europe. Expect any more negative news to put even more downward pressure on mortgage rates, possibly pushing them to even newer historical lows.
Economic Calendar for Week of May 7, 2012
- Monday – N/A
- Tuesday – Redbook
- Wednesday – N/A
- Thursday – International Trade, Jobless Claims
- Friday – Producer Price Index, Consumer Sentiment
Record Low Mortgage Rates: Where Are Rates Now?
In a fast moving market, mortgage rates can change frequently. Even on a slow day mortgage rates may change several times. To get up to the minute mortgage rates, please call us directly or request a rate quote using the form above.
We can also help answer any questions you have about which loan program(s) make the most sense for your needs and put together a mortgage strategy that makes the most sense for your goals.