What Might Cause Mortgage Rates To Improve Near Term
Mortgage rates have been rising the last few weeks. Anyone in the process of trying to get a new home mortgage who didn’t lock in their rate a couple of weeks ago is certainly painfully aware of this. Especially in the past few days, we’ve only gotten worse. However, there is some near term hope for a bit of improvement.
When the Jobs Report comes out tomorrow, there is a good chance it won’t be good. While the expectation is for 520,000 job losses, don’t be surprised to see that number actually come in at something closer to 550,000. At the same time, last month’s numbers will probably be revised upward. With all these big unemployment numbers, the unemployment rate will probably tick up from last month’s 8.9% to around 9.2%. There is very little doubt that the media will start jabbering on about 10% unemployment which is, unfortunately, a real possibility.
The thing is, the stock market is not going to like this kind of talk and we may see money flow out of it and into bonds, giving mortgage bonds a bit of relief after getting battered the past number of days.