The Bureau of Labor Statistics released the Non-Farm Payrolls report (otherwise known as the “jobs report”) this morning. The numbers significantly disappointed the market, which is driving mortgage rates down. There is a possibility that mortgage rates could make up any ground they lost last week as they move downward.
Non-Farm Payrolls Data Disappoints
The jobs report showed that the United States economy only added 120,000 jobs in March, down from 240,000 in February. The unemployment rate decreased from 8.3% from 8.2%. The market expected around 200,000 jobs to be added, which is why the market has reacted with the stock market losing ground. This is good for mortgage rates since bad news typically drives MBS (mortgage backed securities) pricing up, which has an inverse effect of making mortgage rates go down.
Argument for Further FOMC Easing Strengthened
The FOMC (Federal Open Market Committee) released its minutes on Wednesday and announced that QE3 (third round of quantitative easing) was of the table for the short term. Since this jobs data may indicate that previous gains were seasonal, this data in addition to any future data that disappoints may pave the way for QE3 to come to fruition. This could pave the way for help mortgage rates stay at lower levels.
Where Are Mortgage Rates Now?
Rates can change often, especially on days like today. To get an up to the minute mortgage rate quote and lock in a rate at near all time historical lows, request a free rate quote using the form above or call us directly. We can also help answer any mortgage related questions you might have and discuss which loan programs make the most sense for your needs.