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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