Mortgage Rates Lowest Since September After Jobs Report

by: Matthew Graham

Mortgage rates held on to their recent improvements today after the important Employment Situation (the big “jobs report”) showed November job creation was lower than expected.  In general, weaker job creation is good for interest rates because it speaks to slower economic growth and inflation (both of which are enemies of rates).  This report was particularly important because a strong result would have cast doubt on several speeches from members of the Federal Reserve.  Those speeches have warned about slower economic growth in 2019 and the potential for fewer rate hikes than previously anticipated.

There were no clear winners or losers at first–probably because job creation is still historically solid.  Additionally, the unemployment rate remained ultra low, and wage growth remained above 3.0% on an annual basis.  Markets were indecisive at first, but stocks and bond yields eventually began to move lower.  Multiple mortgage lenders offered small improvements on rate sheets in the afternoon, after the bond market gained enough ground.  Today’s mortgage rates are the lowest in months and current trends are about as strong as they’ve been in more than a year.

Posted by eagleplatinummortgage_wgovya

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