Mortgage rates are a little better this morning.
Jobs and inflation are the primary focus for the interest rate markets for the next 36 hours. The all-important jobs report is due out tomorrow morning and the markets are expecting 200,000 new jobs for March & the unemployment rate to hold steady at 8.9%. Click HERE to understand how this report can impact mortgage rates.
This morning’s weekly jobless claims figures were mixed. Data for the most recent week was positive with claims falling by more than analysts had expected. However, previous weeks figures were revised higher. Good news for the jobs market tends to be bad for mortgage rates and vice versa.
Although inflation measures remain tame here in the US the same cannot be said for other economies. This morning the European Central Bank (ECB) reported that price pressure in the EU rose to the highest level in 29 months. This is concerning because it may be an indicator that inflationary pressure will rise here at home AND because if the ECB begins to raise interest rates it would also cause rates to rise here.
Given that rates are better than yesterday morning I would recommend a locking bias. It’s always a coin-toss headed into the jobs report.
Current outlook: locking bias