Mortgages Blog

Finance Blogs » Mortgages » Jobs report might help mortgage rates

Jobs report might help mortgage rates

By Holden Lewis · Bankrate.com
Friday, December 3, 2010
Posted: 9 am ET

Investors, economists and observers expected an upbeat employment report today. They didn't get it. Mortgage rates are likely to stop rising as a result, and they might fall.

Nonfarm payrolls grew by 39,000 in November, according to the Labor Department. According to Briefing.com, the consensus forecast was that nonfarm payrolls would register an increase of about 130,000. The actual number was 70 percent below that.

The unemployment rate rose to 9.8 percent from 9.6 percent.

Hourly earnings were unchanged, and the average workweek remained the same. The only spot of good news was that the October nonfarm payrolls number was revised upward, to 172,000 from 151,000.

All of this probably spells good news for mortgage rates. Mortgage bond yields edged downward, just slightly, right after the employment report was released. There's no guarantee that mortgage rates will follow the bond yields, but we can hope.

The jobs report stops the upward momentum of mortgage rates temporarily. I'll tweet about it if mortgage bond yields fall substantially.

Bond yields of all types have acted strangely in the last few weeks. When I've thought they would go down, they've gone up. Remember that I'm not psychic.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
1 Comment
Waiting
December 03, 2010 at 9:59 am

I want to hear from Totaller again!!