What's Ahead For Mortgage Rates This Week : April 4, 2011

In a volatile week of trading, mortgage markets closed unchanged last week. Despite economic data proving stronger-than-expected -- a situation that tends to lead mortgage rates higher -- concern for persistently high oil prices tempered Wall Street's excitement and mortgage rates stayed steady.

That's not to say rates weren't volatile, however. From day-to-day, mortgage rates showed huge variance last week and several lenders issued five separate rate sheets Friday.

The 12-month average is slightly less than two per day.

Expect the volatility to continue into this week, too. With little economic data due for release, mortgage rates should move on momentum. This would be good news for rate shoppers and home buyers throughout Minnesota because mortgage rates ended last week on a downswing.

It's all because of the March jobs report.

The jobs report is important to the economy because as the number of working Americans grows, so does total earned wages nationwide. In theory, this leads to higher levels of consumer spending, and to larger government tax receipts.

It starts a cycle in which businesses and governments additional workers and the cycle continues.

The U.S. economy added jobs in March for the sixth straight month.

Mortgage rates are 0.69% higher today as compared to their early-November 2010 lows. The jump has added 14 percent to the 30-year, long-term cost of homeownership in Maple Grove. However, as compared to history, rates remain low.

If you're currently shopping for a mortgage, talk to your loan officer about today's market and its risks. Rates may not rise this week, but they're poised to surge along with the economy. Consider locking in today.

What's Ahead For Mortgage Rates This Week : March 28, 2011

Mortgage markets worsened last week as nuclear meltdown concerns eased across Japan, and the war within Libya moved closer to a potential finish.

Wall Street voted with its dollars, and a return to risk-taking emerged. "Safe haven" buying softened last week and, as a result, conforming mortgage rates in Wisconsin made their biggest 1-week spike since late-January.

Mortgage rates remain historically low, but well above their November 2010 lows.

This week, rates could run higher again. Friday's jobs report is a major story and it will affect mortgage rates in Plymouth and across the country. Jobs are a key component of the nation's economic recovery, and as the economy has improved, mortgage rates have tended to rise.

Economists expect that 190,000 jobs were created in March. If they're correct, it will raise the 12-month tally to 1.3 million net new jobs created nationwide. This is still less than the 2 million jobs lost in the 12 months prior, but it's a positive step that suggests sustained growth.

A positive net new jobs figure for March would mark the first time since June 2007 that jobs growth was net positive 6 months in a row. If March's final figures are better than expected, expected mortgage rates to rise. If the figures are less, look for rates to fall.

The Unemployment Rate is expected to stay sub-9.0 percent, too.

Other news that could change rates this week include Monday's Pending Home Sales report, Tuesday's Consumer Confidence data, and any one of the 4 speeches from members of the Fed. In general, data and/or rhetoric that suggest more growth in 2011 will cause mortgage rates to rise.

If you are still floating a mortgage rate and have yet to lock one in, this week may represent your last chance for low rates. Good news about the economy will put pressure on mortgage rates to rise.