Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Jobs Report's Strength Could Be Behind Rising Mortgage Rates

Freddie Mac released its weekly update on national mortgage rates on Thursday morning. After seeing most rates fall a week ago, we're seeing them bouncing right back, yo-yo-like, this morning.

Both 30-year fixed-rate mortgages (FRMs) and 15-year FRMs spiked during the past week, with 30-year FRMs rising nine basis points to return to the 4.37% level of two weeks ago. Fifteen-year FRMs came within a single basis point of their two-week-ago level, rising six b.p. to 3.38%.

Additionally, 5/1 adjustable-rate mortgage (ARM) rates reacted even more abruptly, returning to levels last seen near the end of January, as they rose six basis points, to 3.09%. In contrast, one-year ARMs resumed a month-long trend of declines, falling four b.p. to land at 2.48%.

Freddie Mac vice president and chief economist Frank Nothaft pointed to February's above-estimates employment report of 175,000 jobs created in the month as one factor pushing rates upwards. Indicating a healthier economy, the employment number suggests more homebuyers may have paychecks coming in, with which to pay higher mortgage rates. Employment numbers for the previous two months were also revised upwards, by 25,000 jobs total.

Meanwhile, the unemployment rate rose to 6.7%. While this might sound like a negative development, it could actually indicate that more job seekers are returning to the market, temporarily unable to find work, but perhaps soon to do so -- if the jobs numbers continue to climb.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2875217, ~/Articles/ArticleHandler.aspx, 9/4/2015 10:39:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

Today's Market

updated Moments ago Sponsored by:
DOW 16,156.33 -218.43 -1.33%
S&P 500 1,927.05 -24.08 -1.23%
NASD 4,698.69 -34.81 -0.74%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes