Job growth has been steady but not impressive, shows the March employment report released today.
That means investors have no reason to celebrate the results of the report, and borrowers don't have to worry about mortgage rates spiking -- for now.
The economy added 192,000 jobs in March, and the unemployment rate remained at 6.7 percent as more people entered the workforce, the Labor Department reported. Economists had expected about 200,000 new jobs.
"This was a decent but not great report," writes Joel Naroff, president and chief economist of Naroff Economic Advisors. "I was hoping for a bigger one, and I still think it is coming. It just didn't happen in March. "
The economy needs to add about 250,000 jobs per month for accelerated growth, Naroff says.
What could have been
If the numbers in the March report had been bigger, rates could have risen significantly today. That's because when investors feel confident about the economy, they pull money away from safer investments such as Treasury and mortgage bonds and bet on riskier investments.
When they feel nervous about the economy, the opposite happens and mortgage rates drop. Since the report was released this morning, the 10-year Treasury yield dropped to about 2.72 percent from 2.79 percent.
That means borrowers could see slightly lower mortgage rates today. Enjoy it while it lasts!
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