Here is your dose of what the mortgage market has in store for the week. Rates today are relatively similar to last week with not much movement. However, short term fixed mortgages such as 10, 15 and 20-year fixed terms have decreased dramatically.
There are two important reports that are predominately relative to mortgage interest rates this week. Tomorrow’s manufacturing index release from the Institute for Supply Management (ISM) measures trade executive’s manufacturer sentiments. It is expected to show a decline. If estimates hold true, we will see slight improvements in mortgage rates.
Friday’s Labor Department release of March’s employment report is the most important data I am expecting this week. Unemployment is expected to increase from February’s 4.8% to 5.0%. If the estimated 50,000 payrolls lost is exceeded we should see the most significant drop of mortgage rates on Friday. I would suggest that if you are interested in refinancing, be prepared to lock by Thursday. This way if the employment report does not help interest rates, you will protect your program. As always, I offer a float down option if rates improve after I lock your rate.
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