Thursday, March 31, 2011

What's the Rate?

Just as Spring can't make up its mind whether to arrive in full force, or hang back for Winter to have its way... the flowerEconomy is doing the same thing.  It just can't decide:  are we moving forward with expansion or riding into the feared 'double dip'.

One thing for sure.... 8:30 am Friday will help make that decision.  (not the weather, but the economy).  The biggest report each month, the Monthly Jobs Report will be announced.  This will be the report for March jobs.  Forecast is for 190k new jobs to be added.  8.9% unemployment rate. 

If we hit that number, that will be a good sign for our overall economy and stocks will rise.  If we exceed it, great!  But if we miss it (less than 160k), stock markets won't be pleased and will sell off.

For rates... exactly the opposite.  A good report will confirm inflation is going to build, which hurts rates.  If it misses, meaning the 160k number or worse, rates will improve as the 'ol Double Dip may be upon the US.  Personally, I'd rather see good jobs, higher rates and people buying homes!  How 'bout you?

If you see this post before 8:30, tune in to CNBC to see the report announcment and commentary.  (Time Warner channel 37 or 1407 on the HD side... or XM Radio channel 127... yes, I"m a junkie on that station) .  If you are not inclined to watch it happen, just watch for headlines later in the day.  190k or better is good. 

Rates for this week were steady... maybe a tick up in a few categories:

  • 30 Yr Conventional – 4.625%

  • 30 Yr VA – 4.5%

  • 30 yr FHA – 4.5%

  • 15 Yr Conventional – 3.875%

  • 5/1 ARM – 3.25%

  • USDA (zero down) – 4.75%

By mid - day Friday, these could be different depending on the jobs data from 8:30.  Lets hope they are!

I'm around for the weekend if you need assistance with a buyer.

-Brad    919-854-4457

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