Increasing May Jobs Report Shows Strengthening Economy

The U.S. Department of Labor released its Non-Farm Payrolls and National Unemployment Rate reports Friday showing 175,000 jobs were added in May, which surpassed expectations of 164,000 new jobs and April's reading of 149,000 jobs added. The jobs added in May were largely from the private sector.

However, the national unemployment rate for May was 7.60 percent, one-tenth of a percent higher than expectations and the April reading of 7.50 percent. The rise was attributed to more people entering the workforce as opposed to people losing jobs.

420,000 workers joined the workforce in May, which pushed the civilian participation rate in the labor market to 63.4 percent; the highest participation rate since October 2012. A rising participation rate suggests that more workers believe they can find jobs and have joined or returned to the labor market.

Economists Pleased With Increasing Jobs In Difficult Environment

Economists were pleased to see jobs increasing against an environment of higher taxes, a soft global economy and budget cutbacks in the U.S. government.

A lingering issue for U.S. labor markets is the number of people looking for full time work, but who are unable to find full-time employment. When these workers are added to the ranks of the unemployed who are actively seeking work, the actual unemployment rate almost doubles to 13.8 percent for May.

The national unemployment rate is based on workers who are actively seeking work. Many U.S. workers stopped looking for work after years of unemployment.

Fed May Review Quantitative Easing Program Soon

These reports don't provide a clear indication of what the Federal Reserve may do regarding its current monetary policy; the Fed is currently purchasing $85 billion a month in U.S. Treasury bonds and mortgage-backed securities (MBS). This effort is intended to keep long-term interest rates, including mortgage rates, lower.

The Fed has indicated that it will review its quantitative easing (QE) policy relative to improvements in the economy. In recent months, the Federal Open Market Committee of the Federal Reserve (FOMC) has discussed lowering or eliminating its QE efforts, but so far is maintaining its current level of QE and maintaining the federal funds rate at 0.250 percent.

While housing markets are improving, the jobs sector is moving at a slower pace. This suggests that home prices could rise even faster if more consumers had sufficient income for buying a home.

Upswing In April 2013 Jobs Report Signals Good News For Real Estate

The Bureau of Labor Statistics released its monthly Non-farm Payrolls and National Unemployment Rate for April last Friday. These two reports are collectively called the Jobs Report.

165,000 jobs were added in April, while the unemployment rate dropped from 7.60 percent in March to 7.50 percent in April. 673,000 jobs have been added since January. Jobs were added in employment sectors including business and professional, health care and eating and drinking establishments.

The main impact of the jobs report on home sales and mortgage lending is the ability of would-be home buyers to qualify for mortgage loans.

Long term unemployment and under-employment has worked against consumers wanting to buy homes when interest rates and home prices hit significant lows.

 Falling Long Term Unemployment Numbers Help New Home Buyers Buy Homes

Long-term unemployment (workers unemployed for 27 weeks or more) fell by 258,000 workers to 4.4 million in April. The share of long term workers among all unemployed fell by 2.2 percent to 37.4 percent of unemployed workers.

Since January, the number of long-term unemployed has decreased by 687,000 workers and 3.1 percent. Gaining employment is a plus for the economy and for households facing financial stress due to unemployment.

Another significant data set in terms of U.S. jobs measures workers who are working part-time, but who want to work full time. This sector increased by 278,000 in April to 7.9 million.

February and March 2013 Non-farm Payrolls numbers were revised upward. In February, jobs added were changed from 268,000 to 332,000. In March, jobs added were revised from 88,000 to 138,000. This adjusts the number of jobs added for February to March by an additional 114,000 new jobs.

Federal Reserve Bond Purchase Point To Continued Low Mortgage Rates

The Federal Reserve is continuing its program of quantitative easing (QE) by buying $85 billion in bonds and mortgage backed securities (MBS) monthly.

Reducing or eliminating QE would lessen the demand for bonds and MBS; when bond and MBS prices fall, mortgage rates usually rise. Lower mortgage rates can help offset rising home prices and allow more consumers to buy homes.

While home prices are gradually increasing, mortgage rates are still low. This helps moderate-income home buyers with affordability, but these conditions won't last indefinitely.

In some regions, such as the West, available homes and land are in short supply, which is driving up home prices. This trend is helping home owners, and potentially home sellers, gain higher sales prices for their real estate. Overall, increasing the number of jobs is positive for the economy.

Contact your trusted mortgage lender for a personalized mortgage interest rate quote and to learn more about affordable home loan options.

Federal Jobs Report Shows Biggest Increase Since 2008

The Bureau of Labor Statistics (BLS) issued its Job Openings and Labor Turnover report for February on Tuesday, June 9th, 2013.

The data was mixed with preliminary figures for all non-farm jobs increasing from 3.62 million jobs in January to 3.93 million jobs in February.

This was the highest month-to- month increase in jobs since May 2008. 

Non-farm jobs increased by 399,000 jobs from 3.53 million in February 2012 to 3.93 million jobs in February 2013, an increase of 10.2 percent year-over-year.

More Jobs Means More Opportunities For Home Ownership

More jobs generally means higher incomes and stability which enable more families to buy homes and qualify for mortgage loans.

Hires between January and February 2013 rose from 4.30 million to 4.43 million hires, an increase of 2.70 percent.

Hires between February 2012 and February 2013 fell from 44.9 million to 44.2 million, a decrease of 1.6 percent.

Total non-farm job separations changed little month to month, and remained exactly the same year-over-year at 4.20 million separations.

Numbers of hires and separations surpass job numbers due to workers being hired on and/or separated from more than one job during the reporting period.

Regional Non-Farm Employment Shows Job Growth

• Northeast: Non-farm jobs fell from 688,000 jobs in January 2013 to 647,000 jobs in February 2013, but increased year-over-year from 589,000 jobs to 647,000 jobs.

• South:  Non-farm Jobs fell from 1.56 million jobs in January 2013 to 1.50 million jobs in February 2013. Jobs increased year-over-year from 1.34 million jobs in February 2012 to 1.47 million jobs in February 2013.

• Midwest: Non-farm jobs grew from 712,000 in January 2013 to 780,000 jobs in February 2013 and increased from 740,000 jobs to 780,000 from February 2012 to February 2013.

• West: Non-farm jobs increased from 806,000 to 830,000 between January and February 2013; on a year-over-year basis, jobs showed noteworthy growth from 650,000 jobs to 830,000 jobs between February 2012 and February 2013.

It's A Great Time To Buy Or Refinance A Home

Improving labor data indicates that the economy is on the mend, but this could cause mortgage rates and home prices to rise as the economy expands.

A gradual economic recovery suggests that home buyers and others seeking lower mortgage rates and refinancing can still find favorable mortgage terms.

But it would likely be best to take advantage of the still historic home purchase and financing opportunities that are available today.

Contact your trusted, licensed real estate or mortgage professional today to learn how the growing economy can benefit your family as well.

Surprisingly Strong Jobs Report May Affect Mortgage Rates

Last week's jobs report -- a combination of the Department of Labor's Non-farm Payrolls Report and Unemployment Rate -- provided investors and job seekers with unexpected good news.

Job growth for February handily exceeded most economists expectations of 160,000 by adding 236,000 new jobs.

According to the Bureau of Labor Statistics, employment increased in business and professional services, construction and healthcare:

• Business and professional services added 73,000 jobs
• Construction added 48,000 jobs. Of these, 17,000 jobs were for residential construction.
• Healthcare added 32,000 jobs

Since September, construction employment has risen by 151,000. This increase in construction jobs may point to a strengthening in the home building sector.

Stronger home building numbers may lead to increasing home prices for sellers and property appreciation for home owners.

Strong Jobs Numbers Help Stock Market Rally, May Spur Higher Mortgage Rates

Retail has added 252,000 jobs over the past year. Hiring in retail suggests that consumers are spending more, which is a strong indicator of economic growth.

These figures demonstrate a trend toward economic recovery and added a last-minute boost to last week's stock market rally.

Rising stocks generally cause bond prices including MBS to fall and mortgage rates to rise.

The seasonally adjusted employee participation rate declined by 0.40 percent year over year; in February 2012, the seasonally adjusted was participation rate was 63.9 percent; in February 2012, the participation rate was 63.5 percent.

The Unemployment Rate for February came in at 7.7 percent; this was lower than Investor expectations of 7.8 percent and January's unemployment rate of 7.9 percent.

The seasonally adjusted unemployment rate has decreased by.60 percent from 8.3 percent in February 2012.

Unemployment Rate Lowest Since December 2008

Long-term unemployment of 27 weeks or more accounted for 40.2 percent of February's unemployed.

8 million workers are employed part time due to scheduling cutbacks or because they could not find full time work.

The Fed has bench-marked an unemployment rate of 6.5 percent as a sign of sufficient economic recovery that could allow the Fed to curtail its monetary easing program.

Given this perspective, the Unemployment Rate remains high, but appears to be declining gradually.

Economic indicators and recently climbing interest rates suggest that mortgage borrowers may want to lock in their best mortgage rates now.

Mortgage Rates Rising On 26 Straight Months Of Jobs Growth

According to the Bureau of Labor Statistics (BLS) and its November 2012 Non-Farm Payrolls report, the U.S. economy added 146,000 net new jobs last month.

November's job growth exceeded Wall Street expectations of 90,000 jobs added for the month, and was a small increase from October's 138,000 jobs added.

Three job sectors in which employment rose in November include :

• Retail : 58,000 jobs added
• Business and Professional Services : 43,000 jobs added
• Healthcare : 20,000 jobs added

It appears that the effects of Hurricane Sandy were muted, although they may be temporarily overshadowed by seasonal factors.

After losing more than 7 million jobs in 2008 and 2009, the U.S. economy has since recovered more than 4.6 million jobs. Job growth has reached 26 consecutive months and is expected to remain consistent through 2013.

In addition, the BLS report showed the national unemployment rate dropping 0.2 percentage points in November to 7.7 percent. This is the lowest Unemployment Rate since January 2009.

Growing employment is a strong indicator of economic expansion, which traditionally leads to rising mortgage rates.

When mortgage people work, more income is earned and more taxes are paid. This often leads to higher levels of both consumer spending and government spending, both of which spur additional hiring and economic expansion.

When the economy is in expansion, equity markets often gain and bond markets often lose. When bond markets are in retreat, mortgage rates in Alpharetta rise. This relationship takes on added importance this week with the Federal Reserve's Federal Open Market Committee (FOMC) scheduled to adjourn.

The Non-Farm Payrolls Report is a top economic indicator and is a key part of economic and policy decision made Capitol Hill and within the Federal Reserve. As one example, recent Federal Reserve stimulus has been specifically aimed at lowering the national Unemployment Rate. As the economy improves and as jobs are regained, the Fed may be less likely to support low rates.

If you're floating a mortgage rate, consider locking in. Rates can't stay low forever.

Make A Mortgage Rate Plan Ahead Of The Jobs Report

Been shopping for a mortgage rate? You may want to lock something down. Tomorrow morning, mortgage rates are expected to change. Unfortunately, we don't know in which direction they'll move. 

It's a risky time for Georgia home buyers to be without a locked mortgage rate.

The action begins at 8:30 A.M. ET Friday. This is when the government's Bureau of Labor Statistics releases its April Non-Farm Payrolls report.

The monthly Non-Farm Payrolls report is more commonly known as "the jobs report" and provides a sector-by-sector breakdown of the U.S. employment situation, including changes in the Unemployment Rate.

In March 2012, the government reported 120,000 net new jobs created -- half the number created during the month prior, and the third straight month of declining job creation. The Unemployment Rate fell one-tenth of one percent to 8.2%.

For April, economists expect to see 160,000 net new jobs created, and no change in the national Unemployment Rate.

Based on the accuracy of those predictions, mortgage rates in Atlanta are subject to change. If the actual number of jobs created in April exceeds economist expectations, mortgage rates should rise. Conversely, if the actual number of jobs created falls short, mortgage rates should drop.

Job growth's link to mortgage rates is straight-forward. Jobs are an economic growth engine and mortgage rates are based economic expectation. Therefore, as the number of people entering the U.S. workforce increases, so do Wall Street's growth projections for the economy. When that happens -- especially in a recovering economy such as this one -- mortgage rates tend to rise.

So, for today's rate shoppers, Friday's job report represents a risk. The economy has created jobs for 18 straight months, a winning streak that has added 2.9 million people to the U.S. workforce. If that winning streak continues and expectations are beat, mortgage rates are likely to rise off their all-time lows, harming home affordability in BrookStone, among other areas.

What's Ahead For Mortgage Rates This Week : April 9, 2012

In a week of up-and-down trading, mortgage markets improved for the second consecutive week last week. Weaker-than-expected jobs data plus evidence of a slumping Eurozone took mortgage bonds lower, capped by a furious Friday morning rally that dropped mortgage rates to near-record levels.

Once again, volatility ruled the bond pits.

Tuesday afternoon, after the release of the Fed March Minutes, mortgage rates spiked. Some products climbed as much as 0.250 percent. The surge stemmed from the Fed Minutes showing Federal Reserve members hesitant to begin new rounds of market stimulus without a demonstrated, national economic slowdown. 

Wall Street hadn't expected the Fed's verbiage to be so well-defined. With little evidence that such a slowdown was underway -- the economy has shown two straight seasons of consistent, steady growth, after all -- equity markets rallied and bond markets sunk, causing mortgage rates to rise.

By Wednesday, however, rates had started to fall. 

Civil unrest in Spain plus concern that the nation will fail to meet its debt obligations drew global investors away from equities and into the relative safety of U.S. government-backed bonds -- including mortgage-backed bonds. This is a common investment pattern during times of economic uncertainty and one of the major reasons why mortgage rates have been so low, for so long.

If the scenario in Spain sounds similar to what transpired in Greece between mid-2010 and late-2011, that's because it is. Mortgage rates in Georgia may benefit in the medium-term.

Also helping rates last week was the March jobs report.

The U.S. government reported 120,000 net new jobs created in March, well short of the 200,000 figure that analysts expected. Market sold off sharply on the news, giving rate shoppers another chance to capture low rates.

This week, with the economic calendar light, look for Europe to dictate market action. Mortgage rates may move lower but there's more room for rates to rise than to fall. Rates remain near all-time lows.

Jobs Report Due Friday; Mortgage Rates Expected To Change

If you're out shopping for a home this week, or trying to lock a mortgage rate, with Friday comes home affordability risk. Consider locking your mortgage rate today.

The March Non-Farm Payrolls report is due for release Friday morning and mortgage rates are expected to move. Unfortunately for the home buyers and rate shoppers of Canton , we can't know in which direction that will be.

The prudent play may be to lock your mortgage rate today.

On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called "the jobs report", the release is a bona fide market-mover, month after month. 

Depending on how the March jobs data reads, FHA and conforming mortgage rates could rise -- or fall -- by a measurable amount post-release. This is because today's mortgage market is closely tied to the economy, and the economy is closely tied to job growth.

The connection between jobs and mortgage rates is basic.

More workers leads to higher levels of consumer spending nationwide and consumer spending accounts for the majority of the U.S. economy.

In addition, when more workers are paid, more taxes are paid, too. Local, state and federal governments collect more monies when payrolls are rising which, in turn, benefits projects that purchase new goods and services, and, in many cases, results in the hiring of additional personnel.

Job creation can be a powerful, self-reinforcing cycle. 

Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered half of them. Friday, analysts expect to count another 200,000 jobs created. If the actual number of jobs created exceeds estimates, look for stock markets to gain and bond markets to lose. This leads to higher mortgage rates -- especially with the Federal Reserve zeroed in on the labor market.

If the actual number of jobs created in March falls short of expectations, however, mortgage rates may fall.

Unfortunately, by the time the report is released, it will be too late to act on it. The release is made at 8:30 AM ET and bond markets are closed for Good Friday.

Home Affordability Threatened By Friday's Jobs Report

This week, once more, we find mortgage rates are on a downward trajectory. Conforming mortgage rates have returned to near all-time lows. After Friday morning's Non-Farm Payrolls report, however, those low rates may come to an end.

It's a risky time for Georgia home buyers and would-be refinancers to be without a locked rate.

Each month, on the first Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls report for the month prior. More commonly called the "jobs report", Non-Farm Payrolls provides a sector-by-sector employment breakdown, and the nation's Unemployment Rate.

In December 2011, the government reported 200,000 net new jobs created, and an Unemployment Rate of 8.5%.

For January 2012, economists project 135,000 net new jobs with no change in the Unemployment Rate and, depending on how accurate those predictions are proved, FHA and conforming mortgage rates for homes in Bridge Mill are subject to change. The monthly jobs reports tends to have an out-sized influence on the direction of daily mortgage rates.

The connection between jobs and mortgage rates is fairly direct.

Job growth is a key cog in the economic growth engine and mortgage rates change daily based on short- and long-term economic expectation. As more people join the workforce, economic expectations change; the economy tends to expand, breeding optimism among investment. When this occurs, it often spurs investment in the stock market, which tends to leads mortgage rates up.

In short, in a recovering economy, when job growth is strong, all things equal, mortgage rates rise. Home affordability suffers.

So, for today's rate shoppers, Friday's job report represents a risk. The economy has added jobs over 15 straight months, a streak that's added 2.1 million people to the workforce. Although the jobs market remains weak and well off its peaks from last decade, a 15-month streak is worth watching. More jobs means more more income earned nationwide, more money spent by households, and more taxes collected by governments.

This items build a foundation for economic growth and Wall Street is watching.

If tomorrow's Non-Farm Payrolls shows more jobs created than the estimated 135,000, mortgage rates are expected to rise. If the jobs figures falls short, mortgage rates should fall.

The Non-Farm Payrolls report is released at 8:30 AM ET.

Friday's Jobs Report Represents A Big Risk To Low Mortgage Rates

Have you been floating a mortgage rate? It may be time to lock.

At 8:30 AM ET Friday, the government's Bureau of Labor Statistics will release its November Non-Farm Payrolls report. Better known as "the jobs report", the monthly Non-Farm Payrolls figures provide sector-by-sector employment data, and tally the size of the current U.S. workforce size.

From these two elements, the national Unemployment Rate is derived.

Since topping out at 10.2% in October 2009, the Unemployment Rate has dropped to 9.0%. More than 2.3 million net new jobs have been made in the last 24 months.

Wall Street expect to see 125,000 more jobs added in November.

Depending on how closely the actual Non-Farm Payrolls data meets Wall Street expectations, Atlanta rate shoppers could find that the mortgage market landscape has shifted beneath them. The jobs report is a mortgage-market catalyst and when its reported value differs from Wall Street expectations, the impact on mortgage rates can be palpable -- especially in a recovering economy.

The connection between the jobs market and the mortgage market is straight-forward -- as the jobs market goes, so goes the economy.

1. When more people work, consumer spending increases
2. When consumer spending rises, businesses expand and invest
3. When businesses expand and invest, more people are put to work

Furthermore, employees and employers both pay taxes to governments. With more tax revenue, governments embark upon new projects which (1) require the hiring of additional workers, and (2) require the purchase and/or repair of additional equipment and supplies. 

Employment can be a self-reinforcing cycle for the economy and that's why Friday's jobs report will be so closely watched. If the number of jobs created exceeds the 125,000 expected, mortgage rates will rise on the expectation for a stronger U.S. economy in 2012.

Conversely, if the jobs figures fall short, mortgage rates may fall. 

Mortgage rates continue to hover near all-time lows according to Freddie Mac's weekly Primary Mortgage Market Survey. The average 30-year fixed rate mortgage is sub-4.000 percent nationwide, with an accompanying fee of 0.7 discount points. 1 discount point is equal to 1 percent of your loan size.

If you're under contract for a home or looking to refinance, minimize your interest rate risk. Lock ahead of Friday's Non-Farm Payrolls release.

Get your rate lock in today.

More Risk To Home Affordability : Friday's Jobs Report

Within the next 48 hours, mortgage rates may get bouncy. The Federal Open Market Committee will adjourn from a 2-day meeting and October's Non-Farm Payrolls report is due for release.

Of the two market movers, it's the Non-Farm Payrolls report that may cause the most damage. Rate shoppers across Georgia would do well to pay attention.

Published monthly, the "jobs report" provides sector-by-sector employment data from the month prior. It's a product of the Bureau of Labor Statistics and includes the national Unemployment Rate.

In September, the economy added 103,000 jobs, and job creation from the two months prior was shown to be higher by 99,000 jobs higher than originally reported. This was a huge improvement over the initial August release which showed zero new jobs created.

When September's jobs report was released, mortgage rates spiked. This is because of the correlation between jobs and the U.S. economy. There are a lot of economic "positives" when the U.S. workforce is growing.

1. Consumer spending increases
2. Governments start more projects
3. Businesses make more investment

Each of these items leads to additional hiring, and the cycle continues.

Wall Street expects that 90,000 jobs were created in October 2011. If the actual number of jobs created exceeds this estimate, it will be considered a positive for the economy, and mortgage rates should climb as Wall Street dumps mortgage-backed bonds in favor of equities.

Conversely, if the number of new jobs falls short of 90,000, it will be considered a disappointment, and mortgage rates should rise.

There is a lot of risk in floating a mortgage rate today. The Federal Reserve could make a statement that drives rates higher, and Friday's job report could do the same. If you're under contract for a home or planning to refinance, eliminate your interest rate risk.

Lock your mortgage rate today.

A Mortgage Rate Strategy Ahead Of Friday's Jobs Report

Mortgage rates are prepped to make big moves in the next 36 hours. Is it time for you to call in your rate lock?

Friday, at 8:30 AM ET, the Bureau of Labor Statistics will release the Non-Farm Payrolls report for September. Issued monthly, the "jobs report" offers sector-by-sector job creation figures from the month prior, and reports on the national Unemployment Rate.

Last month, exactly zero net new jobs were created, the government said. This month, economists expect a net 60,000 new jobs created.

Depending on where the actual monthly figure falls, FHA and conforming mortgage rates in Atlanta may be volatile. The jobs reports tends to have out-sized influence on the mortgage bond market.

The connection between the jobs market and the mortgage market is fairly straight-forward. As jobs go, so goes the economy. This is because more working Americans leads to a stronger economic base.

1. When more people work, consumer spending grows
2. When more people work, governments collect more taxes
3. When more people work, household savings increases

Each of these items are strengths to a recovering economy.

For rate shoppers, Friday's job report could cause mortgage rates to rise -- or fall. If the actual number of jobs created exceeded the 60,000 consensus estimate, look for mortgage rates to climb.

Conversely, if new jobs fell short of 60,000, expect that rates will drop.

Home affordability is at all-time highs because mortgage rates are at all-time lows. If you're under contract for a home or looking to refinance, eliminate some of your interest rate risk. Lock ahead of Friday's Non-Farm Payrolls release.

Get your rate lock in today.

What's Ahead For Mortgage Rates This Week : September 6, 2011

Mortgage markets improved last week on a weak jobs report, expectation for new market stimulus, growing evidence of a global economic slowdown. Rates were especially volatile, too, with the long Labor Day Weekend looming.

Overall, conforming mortgage rates in Georgia improved for the first time in 3 weeks. On a product-by-product basis, though, mortgage rates are faring differently.

According to the Freddie Mac weekly mortgage rate survey, last week, the 30-year fixed rate mortgage was unchanged but the 15-year fixed rate mortgage and the 5-year ARM fell.

The 5-year ARM is at a new all-time low for qualified borrowers.

A drop in 5-year ARM rates throughout Kennesaw without a corresponding drop in 30-year fixed mortgage rates signals that markets expect the economy to stabilize over the long-term but with weakness in the near-term. The 5-year ARM's ultra-low rates suggests marked weakness ahead.

The 5-year ARM may get another boost this week, too.

While U.S. markets were closed for Labor Day, Eurozone nations were hit with new wave of sovereign debt concern, this time centered on Italy. Greece, Portugal and Ireland have already been the subject of debt default debate this year. Italy's inclusion hit equity market hard and safe-haven buying re-commenced.

This should give a good start to mortgage rates this week. Look for rates to start lower. That's not to say, however, that they'll finish the week lower. With very little economic data due for release, markets will move on momentum and momentum can change in a flash.

The two biggest potential market movers both come Thursday. Fed Chairman Ben Bernanke speaks in Minnesota at 1:00 PM, and United States President Barack Obama addresses the nation at 7:00 PM. Both speeches are highly anticipated and should cause markets to move.

What's Ahead For Mortgage Rates This Week : August 29, 2011

Last week was another volatile week for mortgage rates. Wall Street alternately sought risk and shunned it, causing mortgage-backed bonds to rise and fall rapidly.

There was a lot to move markets, too, including banking concerns across Europe, inflation figures within the U.S., and a public speech by Fed Chairman Ben Bernanke.

Conforming rates in Georgia rose to their highest levels of the week Wednesday afternoon, then receded into the weekend. 3

0-year fixed rates remain above their all-time lows set 2 weeks ago. 5-year ARMs are at all-time lows.

This week, mortgage rates figure to be equally jumpy. As well as a full slate of economic data, because of Labor Day, bond markets will be light on volume. When volume is light, pricing gets volatile.

The week's calendar of data includes:

• Monday : Pending Home Sales Index; Personal Income and Outlays
• Tuesday : FOMC Minutes; Fed President Kocherlakota speaks
• Wednesday : Factory Orders
• Thursday : Jobless Claims; ISM Manufacturing Index
• Friday : Non-Farm Payrolls

Of all the reports, though, it's Friday's Non-Farm Payrolls that might move mortgage markets the most.

Jobs are crucial to the ongoing economic recovery and, from Wall Street to Capitol Hill, it's top of mind.

If the jobs report shows more jobs created than expected, or a positive forward trend, expect bond markets to fall, pushing mortgage rates up. On the other hand, if the jobs report is soft, mortgage rates may improve.

We can't know what rates in Kennesaw will do on any given day, so the best strategy for a shopper is to shop with purpose. Know what you want, and be ready to lock when you see it. 

If you wait too long, the rate will be gone.

What's Ahead For Mortgage Rates This Week : August 8, 2011

Mortgage markets were especially volatile last week, taking rate shoppers in Georgia on a roller-coaster ride. The week's news schedule was full. It included debt ceiling debates, jobs figures, and ongoing maneuverings within the Eurozone.

Each story a material impact on mortgage rates and, as a result, rates varied wildly from day-to-day.

Throughout the early part of the week, mortgage rates fell.

Monday, bond markets improved as leaks of the congressional debt ceiling agreement surfaced. Investors approved of the accord's general terms and bought U.S.-backed debt to prove it. Tuesday, when the final agreement was reached and the terms were made public, mortgage rates dropped again.

This is because the debt ceiling agreement is based on spending cuts and tax increases. In response, analysts revised lower their respective growth estimates for the United States, benefitting bonds.

By Thursday, markets were in full rally mode.

On the eve of the July jobs report, traders flocked to the ultra-safe bond market; "whispers" put the net jobs created figure at a negative. Wall Street feared the worst. By Thursday's close, mortgage pricing was at its best levels since November 2010.

Friday morning, though, markets recoiled. When the Non-Farm Payrolls report showed much-better-than-expected growth, it triggered a bond market sell-off and rates reversed higher. Rates rose more Friday than on any single day since November 30, 2010.

If you were quoted a mortgage rate on Thursday, on Friday, the same mortgage rate cost 1 discount point more.

This week, rates may rise or fall -- it's too soon to tell. 

Friday afternoon, after markets closed, S&P downgraded the long-term debt of the U.S. government a notch. Typically, lower credit ratings means higher borrowing costs which leads to higher mortgage rates, among other things. However, it's unclear how markets will react to the S&P decision.

Plus, the Federal Open Market Committee meets Tuesday and that, too, can affect markets.

As always, the prudent move is to lock your mortgage rate if its payment and terms are sensible. There's too much volatility to know what markets might do tomorrow.

Job Growth Returning To "Normal" Levels -- A Bad Sign For Mortgage Rates

Be prepared for Friday morning. Mortgage rates and home affordability could worsen quickly. At 8:30 AM ET, the Bureau of Labor Statistics releases its April Non-Farm Payrolls report and momentum has been strong.

The monthly jobs report is a market-mover and analysts expect that 196,000 new jobs were added last month. If those expectations are exceeded -- by even a little -- Wall Street would take it mean "economic strength" and the stock market would be boosted.

Too bad for rate shoppers, though; a move like that would also lead to higher mortgage rates throughout Georgia. This is because, coming out of a recession, reports of economic strength tend to push mortgage rates up. We've seen it happen multiple times in the last 8 months.

Since losing more than 7 million jobs between 2008 and 2009, employers have added 1.3 million jobs back to the economy. And we're learning that there's plans for fewer job cuts in the future. It's clear that the jobs market is improving and this is why tomorrow's Non-Farm Payrolls report is so important.

A "weak economy" helped keep mortgage rates low for a very long time. A strengthening economy will reverse that tide.

So, consider your personal risk tolerance today, in advance of tomorrow's Non-Farm Payrolls report. If the thought of rising mortgage rates makes you nervous, call your loan officer and lock in a rate today. Once tomorrow's data is released, after all, the market might look changed.

What's Ahead For Mortgage Rates This Week : May 2, 2011

Mortgage markets improved last week overall. Bigger concerns for Eurozone debt combined with lesser concerns for domestic inflation to push U.S. mortgage rates lower.

Last week marked the 3rd consecutive week through which conforming mortgage rates dropped, the longest such streak since February.

Mortgage rates in Atlanta are now scraping their lowest levels of the year.

A few interesting stories developed last week.

First, the Federal Open Market Committee met and voted to hold the Fed Funds Rate within its target range of 0.000-0.250. In its post-meeting press release, the FOMC said that inflation has been "pushed up" in recent months, but that believes, long-term, that inflation will moderate.

This message pleased the inflation-sensitive bond markets, the place where mortgage rates are made. Bond prices rose in response, and mortgage rates fell.

Then, because markets believe Greece can't meet its current debt obligations without restructure, a bout of safe haven buying began, benefiting domestic mortgage-backed bonds and, therefore, mortgage rates.

It's a terrific example of how world events can change mortgage rates for buyers and would-be refinancing households across Georgia.

This week, mortgage rates will take their cues from the Greece story as it continues to develop, and from Friday's Non-Farm Payrolls report. The jobs report is always a potential market-mover.

Economists expect to see 196,000 jobs added in the economy for April. If the actual number is larger-than-expected, look for mortgage rates to rise on better prospects for the U.S. economy. If the number falls short, look for rates to drop.

With last month's mortgage rate rally, this week marks a good time to lock a rate. Based on current market fundamentals, it appears that there's much more room for rates to rise than to fall. This may be as low as rates get all year.

What's Ahead For Mortgage Rates This Week : April 4, 2011

In a volatile week of trading, mortgage markets closed unchanged last week. Despite economic data proving stronger-than-expected -- a situation that tends to lead mortgage rates higher -- concern for persistently high oil prices tempered Wall Street's excitement and mortgage rates stayed steady.

That's not to say rates weren't volatile, however. From day-to-day, mortgage rates showed huge variance last week and several lenders issued five separate rate sheets Friday.

The 12-month average is slightly less than two per day.

Expect the volatility to continue into this week, too. With little economic data due for release, mortgage rates should move on momentum. This would be good news for rate shoppers and home buyers throughout Georgia because mortgage rates ended last week on a downswing.

It's all because of the March jobs report.

The jobs report is important to the economy because as the number of working Americans grows, so does total earned wages nationwide. In theory, this leads to higher levels of consumer spending, and to larger government tax receipts.

It starts a cycle in which businesses and governments additional workers and the cycle continues.

The U.S. economy added jobs in March for the sixth straight month.

Mortgage rates are 0.69% higher today as compared to their early-November 2010 lows. The jump has added 14 percent to the 30-year, long-term cost of homeownership in Kennesaw. However, as compared to history, rates remain low.

If you're currently shopping for a mortgage, talk to your loan officer about today's market and its risks. Rates may not rise this week, but they're poised to surge along with the economy. Consider locking in today.

What's Ahead For Mortgage Rates This Week : September 7, 2010

Last week was a roller-coaster ride in the conforming mortgage market.  After opening the week by making new, all-time lows, markets reversed sharply on better-than-expected data in manufacturing and housing, and data from overseas.

Rates rose through Wednesday and Thursday, then Friday's jobs report sent rates jumping.

Last week marked the first time that mortgage rates worsened 3 days in a row since late-April.

The combination of the jobs report not posting as poorly as predicted, and light volume because of Labor Day, pushed rates higher by as much as a quarter-percent in some markets.

On the week, conforming mortgage rates in Georgia were unchanged but, depending on when you locked, there was great disparity.  Tuesday's rates were much better than Friday's.

Meanwhile, this week, with little data due for release, mortgage rates should remain unpredictable, moving as a result of momentum and outside influence. It makes for dangerous times for rate shoppers.  Mortgage rates may fall, but, then again, they might rise, too.

Keep in mind that markets are in the midst of a 19-week rally and rates can't fall forever. Mortgage bonds are likely overbought so when the selling begins, pricing should worsen quickly.  This will cause mortgage rates to spike.

Therefore, if you've been shopping for a mortgage or are just wondering if the time is right to refinance, call your loan officer and work the numbers together. Refinancing won't make sense for everyone, but it may make sense for you.

Mortgage rates are still exceptionally low.