Can you believe the delayed, skewed jobs report? The business survey shows 204,000 new jobs…
Bonds opened up at a steady level comparable to yesterday, but then dropped significantly. Not good news for mortgage rates, so you might want to think about locking them. On to what you really want to know; what did the Fed finally have to say about their plans? The Fed has stated that they will continue with their current bond program for now. This is more or less what we expected. They have also stated that the Fed Funds Rate will be suitable for a continued modest growth for the economy, even after the asset program is ended. This suggests that the Unemployment threshold will be lowered in order to keep rates from rising too high, but as we said before, the meeting in Sept. is when we’ll really get to find out what their plans are.
The initial Jobless Claims fell by almost 20,000, to the lowest level since 2008. So overall, the economy seems to be continuing to improve. The Fed have also stated that they do not wish to see rates rise any further tomorrow, so we’re hoping bonds will get over this hiccup today and level out.
August 1, 2013 our updated mortgage rates in Florida are:
- 30 Year Fixed Rate Mortgage – 4.125% (4.361% APR)
- 15 Year Fixed Rate Mortgage – 3.125% (3.536% APR)
Something to keep in mind when hearing all of these positive reports is that July’s report figures are almost always revised after the fact. This is in order to adjust for market distortions that routinely occur in the summer months. While it still appears there is reason to be optimistic, the market improvements we’re seeing now (small and more significant gains) may be less substantial than they currently appear. As we stated earlier, it would probably be advisable to lock your rates now. If and when bonds really do show improvement (and we are hoping it’ll be tomorrow), we’ll let you know.
Check back tomorrow to get the newest rate updates!