Today the unemployment rate is at it’s highest since 1983, sitting at 9.5%. The US has now seen the biggest drop in jobs since post World War 2, with about 6.5 million jobs lost since the recession began in December 2007.
This is not all doom and gloom as this should help mortgage rates improve along with the fact that the Dollar is getting stronger and oil prices are going down again. Oil prices going down pressures the entire stock market to sell off, and we know from earlier posts that when stocks sell off, that money usually ends up in bonds. This also helps rates improve.
With that said, where the bond market is today, the last time it sat here it reversed for the worse. Since rates are tied to the bond market, we certainly hope this doesn’t happen again. With the markets closing early today and closed tomorrow, a sell off would not be uncommon. You can see why it is impossible to know what rates will do, so many factors involved.
Watch for my next post about the FHA 203K laon for rehabing or repairing your home, or a home you want to buy.
Matt Steinmetz
