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Where did all the jobs go? Mortgage rates continue their downward trend at 6.27%, according to Mortgage News Daily. Better yet, FHA and VA rates are now UNDER 6%, coming in just above 5.5%.
There are two things that drive mortgage rates up or down: inflation and jobs. Why is the job market so important? New jobs generally mean more people are spending money, which helps the economy. When people are spending money, interest rates are typically higher.
Conversely, if we are losing jobs, people are spending less, and the Fed needs to help businesses and consumers by lowering the Fed Funds rate to spur the economy.
Today, the Bureau of Labor Statistics (BLS) jobs report came out lower than expected. Due to the unreliable data that keeps coming from the BLS, with significant downward revisions month after month, the economy is not as strong as the Fed thinks.
There are two parts to the BLS report: the Business Survey and the Household Survey. Get this… the Household Survey showed we lost 438,000 full-time jobs and gained 527,000 part-time jobs. Consumers are struggling, and they are doing their best to make ends meet by taking part-time jobs, with some living off of credit cards.
Going forward, we should continue to see a downward trend in mortgage rates through the rest of 2024 and likely all of 2025. Lower rates will help home values continue to increase. If the BLS data is proven to be a smokescreen and another “Transitory Inflation”-type event that the Fed missed, rates will drop faster, and home values will shoot up.
Life is one big calculated risk. Those who are educated and informed take action and make good long-term decisions. Those who sit back tend to follow the herd mentality, and many times, it’s too late. Make sure to stay educated so you can make decisions with the right information.
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The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
