Well, bad news for mortgage bonds today.The Jobs Report came in very strong and is currently pushing down an already overbought mortgage bond market. As for the numbers, there were 94,000 new jobs created in the month of November. This was 24,000 more than expected. Strength in economic numbers tend to increase mortgage rates. The history has show that these statistics are often flawed, but the mortgage bonds still tend to sell off when this type of news comes in since it is inflationary news.
We’ve really had a great week of low rates, its time to lock in before things rebound. (if you were working with us, we would have advised you to lock on Wednesday ahead of the news).. yea, so we’re bragging a little. It just goes to show the importance of knowing what is going on real-time in the mortgage market.
So far today, mortgage bonds are down 91 basis points for the day. That will probably translate into mortgage rates worsening .25-.50%. For example, if the rates worsen by .25%, your payment will increase about $15 per $100,000 financed (30 Year Fixed Loan). End of the world, no.. absolutely not at all. However, that is $5,475 mistake your mortgage originator made (over 30 years). Try and tell me that doesn’t matter! Don’t get mad, just work with the pros 🙂
Again, just a courtesy warning to lock (if its not too late).
Hope you’re having a great day!
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