This week ends with probably one of the most important scheduled economic indicators: The Jobs Report. Not only does the Jobs Report reveal whether or not more Americans are going back to work, it also indicates signs of inflation (wage inflation). Both good news and inflation may cause mortgage rates to trend higher. Numbers that are weaker than expected may cause rates to improve. This is because mortgage rates are based on mortgage backed securities (bonds) and investors will either seek the safety of bonds or possible improved returned with stocks depending on data.
Here are some of the economic indicators that are scheduled to be released this week:
Monday, March 5: ISM Services Index
Wednesday, March 7: ADP National Employment Report and Productivity
Thursday, March 8: Initial Jobless Claims
Friday, March 9: The Jobs Report
Scheduled economic reports are not the only events that may impact mortgage rates. Anything that causes concerns in the market, such as Europes continuing saga, will impact mortgage rates for the same reasons mentioned above. Investors either seeking safety (bonds) or greater returns (stocks).
Our government also impacts rates and the cost of mortgages. Most recently, with the temporary payroll tax cut adding not so temporary cost to new mortgages (priced into the rate) and another example is how HUD is increasing the cost of FHA mortgages effective April 1, 2012 by almost doubling the FHA upfront mortgage insurance premium and increasing the annual mortgage insurance rate.
I quote mortgage rate scenarios live on Twitter for homes located anywhere in Washington. I encourage you to “follow me” on Twitter (you can unfollow anytime) and subscribe to my blog (upper right corner) if you want to stay informed on mortgage trends.
If you would like me to provide a personal mortgage rate quote for a purchase or refinance of your primary residence, investment property or second home located in Washington, please click here.
Please leave a reply