Kevin P. Nguyen

Equity Zone Mortgage-Elk Grove, California

  • About
    • About Us
    • Privacy Policy
  • Mortgage Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
    • Video Library
  • Local Resources
    • Real Estate Market
    • Home Search
    • News Letter
    • Niche Programs
    • Recommended Professionals
  • Blog
  • Home Search
  • Reviews
    • Read My Reviews
    • Leave a Review
  • Contact

Post-Fiscal Cliff, Mortgage Markets Turn Attention To Jobs Data

January 3, 2013 by Kevin P. Nguyen

Unemployment RateMortgage rates moved higher Wednesday up congressional leaders voted to avoid the “Fiscal Cliff”.

Mortgage-backed securities (MBS) fell as investors bid up stock prices. Confidence among investors and consumers typically causes mortgage rates to rise. That’s what happened Wednesday.

For Thursday and Friday, expect jobs data to dictate where Chicago mortgage rates are headed.

The Federal Reserve has said that the national Unemployment Rate will dictate future monetary policy, with the central banker planning to raise the Fed Funds Rate from its target range near zero percent once joblessness falls to 6.5%. Currently, the jobless rate is 7.7 percent.

As the jobs market improves, equity markets should follow, causing mortgage rates to — again — move higher.

Thursday’s Initial Jobless Claims report has already influenced today’s mortgage rates. New claims rose 10,000 to 372,000 for the week ending December 29, 2012. This is slightly higher than Wall Street expected and mortgage bonds are moving better on the news.

Now, Wall Street turns its attention to Friday’s Non-Farm Payrolls report. 

More commonly called “the jobs report”, Non-Farm Payrolls is a monthly publication from the Bureau of Labor Statistics, detailing the U.S. employment situation, sector-by-sector. The economy has added 4.6 million jobs since 2010 and analysts expect another 155,000 added in December 2012.

The Unemployment Rate is expected to tally 7.8%.

As more people get back to work, the nation’s collective disposable income rises, which gives a boost to the U.S. economy. Furthermore, more taxes are paid to local, state and federal governments which are often used to finance construction and development — two jobs creators in their own right.

Furthermore, as the ranks of the employed increase, so does the national pool of potential home buyers. With demand for homes high and rents rising in many U.S. cities, demand for homes is expected to grow. Home supplies are shrinking.

If you’re currently floating a mortgage rate, or wondering whether it’s a good time to buy a home, consider than an improving economy may lead mortgage rates higher; and an improving jobs market may lead home prices higher.

The market is ripe for a refinance or purchase today.

Filed Under: Mortgage Rates Tagged With: Jobless Claims, Jobs, Unemployment Rate

Kevin Nguyen

Contact Kevin

Branch Manager / Sr. Mortgage Consultant
800.815.1945 ext. 3624
916.469.3624 Direct
916.496.3520 Assistant
925.759.3376 Mobile/Text Messages
916.258.0702 Fax

kevin@MyEquityZone.com
APPLY NOW →
 
GET A RATE QUOTE →

Connect With Me

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
5 Elements of a Perfect Listing

Mortgage Glossary

Finance Glossary

Mortgage Terms© ML

Equal Housing Opp

Return to top of page

Copyright © 2023 Kevin P. Nguyen. All rights reserved.   Log In