Just a quick mid-day update: Since opening significantly lower after the jobs report, mortgage bonds have rallied. The FHA loan rates have recovered all of the losses from opening bell and are now up 18 basis points.
We are now overbought according to every technical signal so the market could move quickly if it reverses.
What a wild day already. At the opening today, the government’s Non-Farm Payrolls report came out.
Expectations were for job creation of about 15k. We lost 20k jobs on the month. On this negative economic news, the FHA interest rate should have normally improved, but nothing is normal these days.
The market plunged at open and it looked like mortgage rates were headed higher. Now, 2.5 hours after all of the opening-bell fireworks, we’re back to exactly flat on the day.
There is absolutely no good reason for the FHA mortgage rate to still be at 5%, but it is. If you’re looking at a purchase or refinance anytime soon, there is almost no room for rates to go lower and plenty of room for rates to go up.
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