Buyers looking for any reason not to buy will enjoy this news:
Mortgage Rates were modestly higher on Friday, despite a weaker-than-expected Employment Situation (aka NFP, nonfarm payrolls, or simply “the jobs report”).
NFP is the most important number on any given month in terms of market-moving economic data. When NFP is lower than expected, rates tend to move lower. Even though today’s NFP didn’t fall too terribly short of forecasts, rates nonetheless made a counterintuitive move higher, confirming the generally pessimistic attitude in the bond market at the moment.
The modest increase in rates means we continue to operate at the highest levels in more than 3 months. Most lenders than had been quoting 3.375% on conventional 30yr fixed scenarios are now up to 3.5%. Many have moved up from 3.5 to 3.625%.
While there are some early signs that a ceiling could be forming, it doesn’t make much sense to float in this environment. That will continue to be the case until we see either a big push back toward lower rates, or an extended period (5-10 days at least) of stability at current levels.
Read full article here: