FHA Loan Rates & The Jobs Report

FHA loan rates have improved over the past few weeks, but tomorrow’s jobs report could send them much higher.

The official report is the “Non-Farm Payrolls” report and it is one of the most widely watched economic indicators.  Wall Street watches this report and it is usually a driver for some of the most volatile days of the year.

Tomorrow at 8:30 Eastern, we start what will likely be a volatile day.   Expectations are for a net job loss of around 30,000.  More might push the FHA loan rate a little lower, anything less could send rates much higher very fast.

Jobs drive the economic recovery.  Employed Americans spend more and default on mortgages less.  Positive readings on the job market draws money out of mortgage bonds and into stocks.  When that happens, mortgage rates go higher.

Mortgage rates hit the streets around 9:30 EST so expect tomorrow’s rate sheets to reflect the results of the jobs report.  Today’s rates are incredible and have the potential to jump much higher with only a slightly better than expected result.