Home Loan Rate Update
The news on Friday was all about jobs!!! US employers added 313,000 jobs in February which was much more than anticipated. The initial report from February will be revised up to 2 times over the next couple of months as the numbers become more accurate. The unemployment rate sat a 4.4%. So what is this likely to mean for real estate and home buyers out in the market place?
Well, the first thing that a home buyer should note is that with the expectation of more jobs and higher wages there is also a greater potential for inflation. This means that the FED will likely continue on their current pace of raising rates which in turn should increase borrowing costs for the consumer. According to Freddie Mac the 30 year mortgage was up .5% last week from the beginning of the year. But, at the same time as we see increasing rates wages appear to be rising as well. Which is great news. It is important to remember that rates are still at historical lows and consumer home buying power on the whole continues to go up. So go out there and continue to shop for the home of your dreams!