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Terrible jobs report

By Polyana da Costa ·
Friday, May 4, 2012
Posted: 10 am ET

The jobs report for April was disappointing, at best. The silver lining: it will help keep mortgage rates at or near record lows this week.

The U.S. economy added only 115,000 jobs in April, the Labor Department said today. Economists had expected at least 160,000 new jobs. The department also revised March to 154,000 new jobs, from an earlier report of 120,000 jobs.

The unemployment rate dipped to 8.1 percent from 8.2 percent. But that's mostly because many job seekers have pulled out of the workforce.

The latest numbers are a sign that the economy is growing at a slower pace. From December to February, the economy added an average of about 252,000 jobs per month.

When investors get anxious about the economic situation, they tend to seek safer investments such a U.S. Treasury bonds. That's good mortgage rates because as the demand for U.S. bonds increase, the yield, or rate of return, decreases. Often, mortgage rates follow. So far, the yield on the 10-year Treasury note dropped to 1.90 percent from 1.93 Thursday afternoon.

If you are thinking of refinancing or getting a new mortgage, get going and enjoy these super low rates while you can.

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May 05, 2012 at 3:50 pm

On average, 5 out of 10 clients are typically credit worthy for a loan within the first 60-90 days.

May 04, 2012 at 1:52 pm

We'd LOVE to take advantage of the great interest rates....BUT can't sell our home (going on 6 years now). We've lower our price, staged it, decluttered and basically done cart wheels on the front lawn! Now we are going to advertise land contract? Just hope the interest rates stay low long enough. Banks won't let you rent your home unless you've got 2 years worth of rental income on your tax wonder people are short selling or just walking's a big hassle to try and sell and MAYBE get a decent asking price. Great time to buy for those of us with 700+ credit score:)