Mortgage Rates Week of April 7th
We ended up last week with mortgage rates moving lower in Friday due to a high number of job losses. As we all know, bad news for the economy is good news for mortgage rates. This is why in many cases when the fed cuts rates mortgage rates actually get worse (the fed cutting rates is good for the economy and hurts long term rates - but that is a whole different article)
The unemployment rate is up, a clear signal that the economy may be in worse shape than many mortgage bond traders had thought. It will be interesting to see what happens on Monday as rates have been extremely turbulent of the last few days.
The drop we saw in rates on Friday is putting us back near historic lows after shooting up sharply just a last week. Each time rates have dropped in this manner over the past few months the drop has only lasted for a few days. We will be watching the market closely for our clients to determine if now may be the right time to lock in their rate.