Surprise! It’s a strong Jobs Report

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!

 

Mortgage Rates at Extremely Low Levels

Freddie Mac’s PMMS report was released this morning showing just how low mortgage interest rates have dropped during the pandemic. Remember, the Prime Mortgage Market Survey’s rates are last week’s news as they are based on an average of mortgage rates from last week.

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Mortgage Rates Remain at Historic Lows

Freddie Mac released their weekly Prime Mortgage Market Survey this morning showing that mortgage rates continue to be extremely low.


There are many factors that are causing mortgage rates to remain this low, including increased concern over the coronavirus. Hopefully the virus is contained soon…once that happens, we may see rates return to a more normal level.  Also, with this being an election year, if a Democrat is elected to be our next President, we may see mortgage rates move higher.

Mortgage rates are subject to change…in fact, the mortgage rates posted from Freddie Mac’s PMMS report are an average from last week. Please click here for current mortgage rates based on your personal scenario.

Bottom line, rates are at three year lows making it a great time to refinance or if you’re in the market, buy a home. Most of my clients are dropping their monthly payments significantly which helps them pay off debts or build up savings. If your home is located anywhere in Washington state, where I’m licensed, I would love to help you with your mortgage!

Mortgage Rates continue to DROP

Freddie Mac released their weekly mortgage rate survey showing that mortgage rates have continued to drop are at record lows. [Read more…]

Mortgage Rates Low and Steady…sort of

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Special Mortgage Interest Rates

Last night on Facebook, I saw an ad for a builder’s lender promoting “limited time opportunity special interest rate” when you purchase one of their new homes. This was being shared by a Realtor whom I’m “Facebook Friends” with. I decided to price out this “special rate” and proved that the rate, while very low, is actually not so special.

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Mortgage Interest Rates at Historic Lows

Freddie Mac released their weekly mortgage interest rate survey showing that mortgage rates have continued to trend lower.

Tomorrow we have the Jobs Report being released which tends to impact the direction of mortgage rates as it’s an indicator of inflation. Inflation is the “arch enemy” to bonds, like mortgage backed securites, and therefore tends to drive mortgage rates higher. Stay tuned!

Freddie’s PMMS is based on an average of mortgage rates from last week‘s applications for purchases with 20 percent down with excellent credit. Being the rates shared in this report are from last week, they are technically “expired” as mortgage rates change constantly – sometimes several times a day…especially in volatile markets. The PMMS is a great tool for seeing trends and where mortgage rates have been. It’s not a good tool for where rates are “right now”.

If you would like to know where mortgage rates are right now based on your personal scenario for a refi or purchase for homes located anywhere in Washington state, I’m happy to help you!

Mortgage Rates Drop Lower

20190627pmmsFreddie Mac released their weekly mortgage rate update, Prime Mortgage Market Survey, which illustrates just how low mortgage rates have dropped recently. [Read more…]