Today, the Department of Labor reported that 175,000 jobs were added last month. This is higher than analysts were expecting. Consensus called for about 100,000 jobs to be added. This positive news for the economy will undoubtedly cause mortgage rates to rise somewhat. We will find 30 year fixed rate conventional mortgages in the high 4% range, & 15 year fixed rate conventional loans will struggle to remain below 4%. In an unusual inversion, government loans (FHA & VA) along with jumbo mortgages (loans greater than $417,000) are running somewhat lower than conventional loans, by about 1/4%. These loans are not typically sold to FNMA/FHLMC, so they are impacted by somewhat different forces. The positive part of this is that the employment data, along with other economic news continue to suggest a strengthening economy. This bodes well for all things real estate: buyers feel better buying when the economy is strengthening as confidence levels become higher. In addition, sellers are continuing to enjoy some reasonable appreciation & are able to sell homes for more money. Spring is coming!
Ross Mortgage Corporation
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