Mortgage Rate Update May 5, 2016

Mortgage rates are essentially unchanged from the beginning of the week.

The economic highlight of the week arrives tomorrow when the Bureau of Labor Statistics releases the monthly employment report (click HERE to learn how the report impacts mortgage rates) for April.  Current expectations are that 205,000 new jobs will be announced.

On Wednesday, private payroll company ADP released its version of the report which showed that only 156,000 new jobs were created last month.  This would suggest that tomorrow’s report may come in lower than expectations which would bode well for mortgage rates.

 

However, if you’ll remember back two weeks ago (see HERE) the weekly jobless claims numbers have been coming in at multi-decade lows.  This would leave us to believe that tomorrow’s report may be better than expectations.

As is the case every month this report is very hard to predict.  Given the current technical trading signals and the fact that mortgage rates are better this week than they were last week I am going to recommend locking in today.

Current Outlook: locking