March Job Report Not Optimistic, Affects Mortgage Rates
The Bureau of Labor Statistics releases employment and unemployment rates report on the first Friday of every month. For March 2014, the numbers tend to be lower than Wall Street expected, with 192,000 new jobs added, instead of 205,000.
How are those stats correlated to U.S. mortgage rates? Experts say that the employment shortfall is having a positive effect on mortgage rates.
Since last Friday, mortgage bonds prices, which are normally tight up to a 30-year fixed rate mortgage rates, peaked to a 5-week best index.
After reaching 4.53% in January, the rates today come close to 4.25% with limited points.
It’s hard to define the reason that drives the rates down; some analysts blame it on the overall economy slowdown. In addition, retail and manufacturing outlook nationwide is also not as strong as expected.
Others blame it on the weather, since December 2013 was ranked the 9th coldest in history, and caused a spillover effect into the new year. This, however, doesn’t seem to be a plausible argument, for temperatures went back to normal in February and March.
Read the full story at The Mortgage Reports.