The Sky is Falling- Friday’s Job Report Expected To Push Mortgage Rates Up in the Bay Area

The Sky is Falling- Friday’s Job Report Expected To Push Mortgage Rates Up in the Bay Area

Net new jobs (2009-2011)Friday is a pivotal day for mortgage markets and conforming mortgage rates across California. At 8:30 AM ET, the government will release its March Non-Farm Payrolls report.

More commonly known as “the jobs report”, the monthly Non-Farm Payrolls is a market-mover and home buyers in the Bay Area would do well to pay attention. Depending on the report’s strength, mortgage rates could rise, or fall, by a measurable amount tomorrow morning.

Mortgage Markets

It’s because so much of the today’s mortgage market is tied to the economy, and economic growth is dependant on job growth.

With more job growth, there’s more consumer spending and consumer spending accounts for the majority of the U.S. economy. Additionally, it generates more payroll taxes to local, state and federal governments. This, too, puts the broader economy on more solid footing.

Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered 1.5 million of them. Friday, analysts expect to count another 190,000 jobs created. If the actual figure falls short, expect mortgage rates to ease.

Otherwise, look for rates to rise. Probably by a lot.

If you’re shopping for a mortgage right now, consider your personal risk tolerance. Once the BLS releases its data, it will be too late to lock in at today’s interest rates. If the idea of rising mortgage rates makes you nervous, execute your rate lock today instead.

On a 30-year fixed rate loan, each 1/8 percent increase to rates adds roughly $7 per $100,000 borrowed.

Please message me below if you are interested in locking in a low interest rate before tomorrow announcement. As always subscribe to my news feed by clicking the button. Yo will receive weekly reports on the news affecting Bay area interest rates and how they will affect your bottom line.

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