Jan 8, 2016

Lock your mortgage rates before its too late. An in depth analysis as to how Jobs Report affect Mortgage Rates.

The Bureau of Labor Statistics publishes its Non- Farm Payrolls report commonly known as “The Jobs Report” which gives a detailed picture of the employment changes across ten private labor market sectors including finance. Wall street closely watches this report for two reasons, one being that jobs and labor market are linked closely to the U.S economy and the other reason being that jobs are closely linked to Federal Reserve policy. So today is a volatile day for mortgage market.

Jobs report gives us a detailed look at the U.S labor market and also identifies which economic areas are expanding and contracting. It also lists the current U.S unemployment rate; an information which is vital to understanding investment climate. 

Job growth is paramount to economic growth and this in turn drives investment strategy. More capital a person has, more confident he becomes to buy homes or relocate. So it’s no coincidence that labor market’s rebound has increased home prices. Nationally, home values have recovered all of last seven year’s losses. 

In 2008-2009, when the U.S economy fell into recession, 7.4 million jobs were eliminated. Since then 12.6 million jobs have been added to the U.S economy – a 170 percent recovery in terms of employed people in US. And should the December Non- Farm Payrolls data read stronger than expected, then Feds may raise the Fed Funds Rate at its next meeting which is scheduled for the last week of January 2016.

Analysts expect 200,000 net new jobs were created in December of last year, if the Jobs report indicates a stronger than expected reading say in 249,000, then this could increase the mortgage rates. This is why you must consider locking your mortgage rates before the release of Job's Report. Once the report gets released it may be too late. To read more click here.

We at Peoples Privo Processing, we hope that home buyers and borrowers would lock in their rates before its too late. Peoples Privo processes loans faster with a 50 state foot print.

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