May’s Jobs Report came in much better than expected this morning with 2.51 million jobs ADDED vs the anticipated the 8.5 million jobs lost. Personally, this sounds too good to be true to me and I’m thinking that we’ll see corrections in the months to come…of course, I hope I’m wrong and that an economic (and health) recovery is here.
From Market Watch:
“The biggest payroll surprise in history, by a gigantic margin, likely is due to a wave of hidden rehiring. Businesses which let people go in large numbers in March didn’t need to post their intention to bring people back on. Indeed, they just needed to call/text/email. Still, it’s a mystery why ADP didn’t pick this up, and it contradicts the continuing claims numbers, up 3 million between the April and May survey weeks. One possibility is that many people let go during the lockdowns didn’t make a recorded unemployment claim, either because they thought they would not qualify, or because their filing was caught up in backlogs.” —Ian Shepherdson, chief economist at Pantheon Macroeconomic.
As I write this (7:53 am PST on June 5, 2020), the Dow is up 800 points. Good news for the stock markets and a surprisingly strong Jobs Report tend to negatively impact mortgage rates. I just repriced a refinance scenario for one of my clients that I quoted last night and the same scenario will now cost 0.25% more in points/fee. For example, if the loan amount is $400,000, it now cost $1,000 more in discount points for the same rate (as I write this post). Mortgage rates change constantly throughout the day and may change by the time I publish this post!
This chart is from Freddie Mac’s Prime Market Mortgage Survey, a weekly report that shows average mortgage rates from last week. NOTE: For current mortgage rates for your home located in Washington state, click here. This illustrates that last week rates bumped slightly higher, however are still VERY LOW.
Bottom line, if you have not yet refinanced, I highly recommend that you start a loan application asap. Part of the reason why mortgage rates are near the lowest in 50 years is because of what our economy has been going through due to the pandemic. Once we see real recovery and/or if we see inflation, mortgage rates will most likely trend higher.
If your home is located anywhere in Washington state, I can help you! Click here to start the refinance process or here to get a mortgage rate quote. A majority of the home owners I’m helping with refinances have not needed appraisals, depending on the loan programs and how strong their application is and many are dramatically dropping their mortgage payments. Please don’t miss out on this opportunity!
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