This morning’s Jobs Report came in much stronger than expected with 271,o00 new jobs added in October vs the 181,000 anticipated. Positive revisions were made for August and July. The unemployment rate remains at 5% and hourly wages saw their biggest year over year increase since 2009.
All this good news is not so good for mortgage interest rates. While it’s great for more jobs, less unemployment and higher wages, it translates to wage inflation. Inflation is the arch enemy of bonds and mortgage backed securities (bonds) are what mortgage rates are based on.
The strong Jobs Report also increases the odds of the Fed increasing the Fed Funds rate in December.
As I write this post, 7:00 am on November 6, 2015, I’m quoting:
EDITORS NOTE: Rates posted below are EXPIRED! For current rate quotes for your home in Washington state, click here.
- 30 year fixed: 3.875% (apr 4.047%) priced with 1.324 points. This is 0.467 higher in points compared to what I quoted on Monday’s rate post.
- 30 year fixed: 4.000% (apr 4.098%) priced with 0.445 points.
It’s still early in the day and markets are absorbing the data revealed in the Jobs Report. I will continue to keep an eye on rates and will try to update this post if I see dramatic changes. If you have been sitting on a fence waiting for rates, you might want to reconsider and look at refinancing now. In my opinion, it looks as though we will be continuing to trend higher.
Rates quoted above are based on a purchase in the greater Seattle – King County area with a sales price of $500,000, 20% down payment and a conventional loan amount of $400,000. The home buyers have excellent credit with credit scores of 740 or higher and the transaction is closing by December 14, 2015 or sooner.
Rates quoted are subject to credit approval and may change at any time. This is just a small sample of the mortgage rates and programs that I have available. If you would like me to provide you with a mortgage rate quote for your home purchase or refinance on your home located anywhere in Washington state, please click here.
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