We end this holiday week with great news for mortgage rates and bad news for the economy as a whole as several key pieces of economic data disappointed. This morning, the Employment report showed that US employers hired significantly fewer employees than expected and the jobless rate increased to 9.1%. Earlier in the week, U.S. manufacturing growth data showed manufacturing at its weakest level since September 2009.
While these numbers are not healthy for the economy as a whole, the have played an important role in helping mortgage rates move even lower. During times of economic turmoil, investors pull away from riskier investment vehicles, such as stocks and move their money into safer vehicles such as bonds. In doing so, they help drive mortgage rates lower, as was the case this week and today.
What does this mean for potential home buyers and those looking to refinance their existing mortgage? The window to get into record low rates has been extended, which means there may be no better time than now to see how we can help you with our existing mortgage or new home purchase.