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via TheMortgageReports.com - Dan Green
The U.S. economy is in recovery. It may not always feel it, but it is. Numbers and data don't lie. January's Non-Farm Payrolls is the latest in a series of strong economic indicators and it would be best if home buyers and rate shoppers paid attention.
Mortgage rates are spiking right now as Wall Street begins to bet with the economy instead of against it.
2.1 Million Jobs Created Since January 2011
Each month, on the first Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called the "jobs reports", Non-Farm Payrolls details the employment situation of the United States, summarizing by sector and providing aggregate figures for the economy.
In January, the U.S. economy added 243,000 net new jobs, and prior Non-Farm Payrolls data was revised to show that an additional one-hundred-eighty thousand new net jobs were created last year than were initially tallied.
As compared to one year ago, there are 2.1 million more jobs in the U.S. economy.
Also included in the Non-Farm Payrolls report is the national Unemployment Rate, a measure of the number of people "in the U.S. workforce" and without work. After last month's strong jobs figures, the Unemployment Rate is down to 8.3% -- its lowest since February 2009.
Mortgage Rates Rising Because Of Job Creation
A weak economy contributed to low mortgage rates between 2009-2011. In only makes sense, therefore, that mortgage rates would rise when the economy begins to recover and that's precisely what we're seeing today.
It's no coincidence that the instant that the jobs report hit the wires, the MBS market sold-off. Within 60 seconds, mortgage bonds had lost enough value to raise conforming mortgage rates 0.125% across the board. This is because an improving economy makes Wall Street feel better about "taking risk" and bond markets are the anti-thesis of said risk.
Mortgage rates are rising as stock markets gain.
The all-time lows from earlier this week are history, lost to an improving U.S. economy. FHA mortgage rates, conforming mortgage rates, and jumbo mortgage rates are all higher today and should remain elevated over the near- to medium-term, absent explicit market intervention from the Federal Reserve.
See Today's Mortgage Rates
If you missed low rates earlier this week, don't sweat it. You can never know when a market is truly bottoming-out. You can only see the bottom after prices start rising. That may be today.
Mortgage rates remain historically low. Meanwhile, there are, literally, hundreds of thousand of U.S. households leaving thousands dollars in annual mortgage savings on the table because they've never asked about a refinance.
Today would be a good time to do that -- before rates rise even more.
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