Lack of Job Growth leads to Lower Mortgage Rates

The recent release of the Employment Situation Report showed that the labor market only created 120,000 new jobs, a number that falls short of the expected 200,000 new jobs. Because this report was much weaker than expected, the mortgage interest rates have fallen a bit lower. Typically, whenever there is a blow to job growth, or any other negative economic news occurs, it tends to be good news for mortgage rates which will go down in response. A strong economy usually leads to higher interest rates. Right now, most lenders are seeing the best and lowest interest rates of the month. That indicates rates being lower than 4.0% in most areas, averaging around 3.75%.

Posted in: economic recovery,employment situation report,job growth,mortgage rates