All reports released on the jobs situation this week were on the weak side. The Thursday Jobless Claims number was the highest seen since November. On Friday the jobs report for March was released. The expectations were for 190K jobs to have been added but the actual number was less than half of that, 88K. Despite this the Unemployment Level fell to 7.6% but the drop of .2% was all attributed to people ceasing to look for a job and not as a result of people finding jobs. Jobs data like this is certainly a bit troubling for the overall economic outlook. The good news though is that it does help keep rates low. Rates have now almost retreated to the levels of late January.
The big economic news releases for this coming week is the Fed’s minutes from 3/20 meeting being released Wednesday and we will have inflation numbers presented at the end of the week.
Mortgage rates are lower than a week ago.
The 10-year US Treasury Note is at 1.72%, down .12 since last time.
Credit Spread (10yr UST vs. FNMA Current Coupon) 1.36, same as last time. Spread is remaining very wide compared to what we have seen in the last year or so.
Current 30-year Fixed 3.5%. Jumbo 5/1 ARM 2. 50%.
Of note, the conforming 5/1 ARM is now at 2.25%, the 7/1 at 2.625%.
I am always happy to help with any mortgage questions and/or pre-approvals.