Jobs Report Play’s Key Role Pleasanton Mortgage Rates- Whats Ahead

Jobs Report Play’s Key Role Pleasanton Mortgage Rates- Whats Ahead

Net New Jobs 2009-2011Mortgage markets in the Bay Area  improved in roller coaster-like trading last week. And, not surprisingly, the week’s two big stories were the same two stories roiling mortgage markets since March — Greece and Jobs.

Mortgage Rates on the Mend

In both instances, rate shoppers won. Conforming mortgage rates in California improved for the first time in 3 weeks last week.

Early in the week, mortgage rates fell as doubts resurfaced on the just-completed Greece aid package. Although an agreement had been reached by the Greek Parliament, investors are wondering if it’s a bona fide solution, or delaying an inevitable default.

Talk like this triggers a flight-to-quality, and last week, it led mortgage rates lower.

Then, mid-week, a strong preview of the Friday jobs report led to a reversal. Mortgage markets sold off sharply with the prospect of a blow-out Non-Farm Payrolls number. Analysts upped their estimates 50% — from 80,000 net new jobs created in June to 120,000 — and mortgage rates spiked in anticipation.

The rate rise was short-lived, however, because when the actual jobs report was released, it showed just 14,000 jobs added in June. Mortgage markets reversed and mortgage rates sunk to their best levels in 2 weeks.

This Week in Mortgage News

This week, Greece and now Italy should remain in the headlines, but there’s other rate-changing news, too:

  • Tuesday : FOMC Minutes
  • Wednesday : 10-Year Treasury Auction
  • Thursday : PPI; 30-Year Treasury Auction; Jobless Claims
  • Friday : CPI; Consumer Sentiment

Have a Plan for your Mortgage

If you’re floating a mortgage rate right now, consider locking in. Interest Rates are low. The risks of rates jumping at any given point this week and any week for that matter are always there. I love to work with readers that find my information on the Mortgage and Housing Market helpful in your decision making process. 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.

 

 

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