What Pleasanton Home Buyers Need to Know Before Fridays Jobs Report

What Pleasanton Home Buyers Need to Know Before Fridays Jobs Report

U.S. job growth since 2000

Be ready to rock and roll Friday morning, at 8:30 AM ET, the Bureau of Labor Statistics releases its June Non-Farm Payrolls report. If you’re currently shopping for a mortgage in Pleasanton, or floating a mortgage rate, be prepared. Mortgage rates can change following the monthly report’s release.

Often, by a lot.

Jobs=Recovery

More commonly called “the jobs report“, Non-Farm Payrolls reports on the U.S. workforce by sector, summarizing its findings in terms of total workforce size, and as a national Unemployment Rate. Jobs are considered a keystone in the continuing U.S. economic recovery.

More working Americans means:

  1. More consumer spending, a boost to businesses
  2. More tax collection, a boost to governments
  3. More personal savings, a boost to households

For June, analysts expect the government to report 80,000 net new jobs created, and no change in the 9.1% Unemployment Rate.

Although these figures are slightly below than what can be considered “strong growth”, that’s not what should concern to Pleasanton, Dublin and  Livermore rate shoppers. Mortgage markets react to a deviation from estimates more than to the actual results themselves.

Mortgage Bonds=Mortgage Rates

This is because Wall Street placed bets in advance of the jobs report’s release. If jobs growth tallies more than 80,000, therefore, it signals better news for the economy than what was expected. This will push banks and investors towards equities, and away from bonds — including the mortgage-backed kind.

With less demand for mortgage bonds, mortgage rates will rise.

Conversely, if jobs growth is less than 80,000, mortgage rates should fall.

Mortgage rates remain near their lows for the year, but if the June Non-Farm Payrolls report beats estimates of 80,000 jobs made in June, look for mortgage rates to spike.

Have a Plan for your Mortgage

If you’re floating a mortgage for your home purchase rate right now, consider locking in. Interest Rates are low and the gamble to the down side is not worth the upside risk. I love to work with readers that find my information on the Mortgage and Housing Market helpful in your decision making process buying or refinancing a home. As a Mortgage Planner at Vintage Mortgage Group in Pleasanton I am in a unique position to help you capitalize at any point in the market. Contact me below today to help you with your purchase or refinance.

 

Subscribe to our daily mortgage market emails.

Have a Question?

Legal Disclaimer
Or give us a call
925-484-5363