Mortgage Rates Head Lower on Unemployment Data
Mortgage interest rates are moving — and they’re moving lower.
Thanks to the job report today, mortgage interest rates are heading lower as unemployment rises to 9.7%. Even though initial jobless claims are down, the bottom line is that the economy is still shedding jobs. However, it is good news that the economy is shedding them at a slower rate. And besides, jobs data is a lagging economic indicator according to The Mortgage Reports. Here is what The Mortgage Reports says about jobs data and mortgage interest rates:
In other words, jobs data doesn’t so much tell us about today as it tells us about yesterday. It’s why mortgage rate are improving this morning. Wall Street expected the jobs data to be a little bit stronger than what it was.
All the talk of rising home values and consumer confidence levels may have left investors too optimistic about jobs and consumer spending. Today, they’re shifting expectations and spelling good news for home buyers and rate shoppers.
In the end, this is good news for home buyers and those looking to refinance. For those who want to take advantage of the first time home buyer tax credit, it comes at a great time. Home prices are low, and there are incentives galore. For those looking to refinance, well, it’s just nice.
I’m excited because I thought I’d missed the boat by dragging my feet about the whole refinancing process. But now it looks as though I get a second chance. Which is great. Refinancing could really save me money in the long run. And with mortgage rates 1.5 points lower than when I bought, I could save thousands over the life of my home mortgage loan. I could save even more if I can refinance to a 15 year or 20 year loan. I mean, really, the current climate offers a number of opportunities for those who are in a position to make some new money moves.
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