Mortgage Rates Higher Despite Slower Job Growth

Mortgage Rates were modestly higher, despite a weaker-than-expected Employment Situation (aka NFP, nonfarm payrolls, or simply “the jobs report”).  NFP is the most important number on any given month in terms of market-moving economic data.  When NFP is lower than expected, rates tend to move lower.  Even though today’s NFP didn’t fall too terribly short of forecasts, rates nonetheless made a counterintuitive move higher, confirming the generally pessimistic attitude in the bond market at the moment.

The modest increase in rates means we continue to operate at the highest levels in more than 3 months.  Most lenders than had been quoting 3.375% on conventional 30yr fixed scenarios are now up to 3.5%.  Many have moved up from 3.5 to 3.625%.

While there are some early signs that a ceiling could be forming, it doesn’t make much sense to float in this environment.  That will continue to be the case until we see either a big push back toward lower rates, or an extended period (5-10 days at least) of stability at current levels.
Loan Originator Perspective

NFP was almost a non-event.  Big question now is where do we go from here?  December is not too far away (Fed rate hike expected), November is right around the corner (election, new President, new policy).  I personally think we are hitting a ceiling on rates prior to either of the two major events anticipated, and we should trade within a tight range.  That being said, I do not think rates will be improving much, barring an unforeseen major event, and advise locking all loans within a 30 day closing window.  –Gus Floropoulos, VP, The Federal Savings Bank

You know rates are swimming against the tide when NFP (the jobs report) disappoints (as it did today) and loan pricing still worsens.  As I mentioned earlier this week, the short term trend is not our friend now.  It’s wonderful that we haven’t had any days with overwhelming spikes, but since September 27th, rates have increased roughly .25%.  I’m still locking early, as I would hate to have an unlocked pipeline if/when the trickle to higher rates grows into a cascade.  Hope everyone on east coast stays safe!  –Ted Rood, Senior Originator

No Origination and No Underwriting Fees

Superior Mortgage Lending is a broker by design. We have lent our own money as a mortgage banker and brokered in the past and have made the decision to stay with being a broker because of the flexibility we have with programs. We are not captured with certain credit scores. Also, as a mortgage broker we can offer better rates and no fees. At Superior our ultimate goal is to create lasting relationships with our clients so that we may continue providing excellent service for many years to come. We offer a wide variety of Residential and Commercial Loans. Superior Mortgage Lending is your premiere team of mortgage professionals in Las Vegas.
 We have build a brand of professionalism and excellence, as well as having loan products to help more people. That is our mission. Call us today and one of our professional Mortgage Loan Officers can help you get started.

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About Superior Mortgage Lending LLC

Superior Mortgage Lending LLC is a full service mortgage broker located in Las Vegas, Nevada. Our goal is to provide excellent service to you throughout the process. NMLS # 372130 Nevada License # 3582 California License # 603K964 Arizona License # 0119906 8867 W Flamingo Road STE 200 Las Vegas, NV 89147 (702)507-4170 /
This entry was posted in 15 Year Mortgage Rates, 30 Year Mortgage Rates, Commercial Real Estate Lending, Commerical Loans, Conventional Loans, Current Rates, Hiring Loan Originators, Home Mortgage, Home Refinance, Jumbo Loans, Las Vegas Home Mortgages, Las Vegas Mortgage Broker, Las Vegas Mortgage Company, Las Vegas Mortgage Lender, mortgage broker in las vegas, Mortgage Interest, mortgage loans, Mortgage Refinance Nevada, real estate las vegas. Bookmark the permalink.

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