RE: U.S. Unemployment5 Jun 2020 16:43
‘It’s going to be ugly,’ analyst says as mortgage rates suddenly spike on shocking jobs report..
The average mortgage shopper may see rates on the 30-year fixed as much as a quarter point higher, said Matthew Graham, COO of Mortgage News Daily, which runs daily averages from lenders.
Mortgage rates loosely follow the yield on the 10-year Treasury.
“It’s going to be ugly,” Graham said. “Today is the first time since the Covid-19 market reaction settled down in March that interest rates truly have a reason to panic. Until further notice, this looks like liftoff.”
What’s good news for the U.S. economy is suddenly bad news for mortgage rates. A far-better-than-expected May employment report only added to a growing sell-off in the bond market, pushing yields to the highest level since March. Mortgage rates loosely follow the yield on the 10-year Treasury.
Rates have been rising this week, after sitting around a record low for the last two weeks. Friday, the average mortgage shopper may see rates on the 30-year fixed as much as a quarter point higher, according to Matthew Graham, COO of Mortgage News Daily, which runs daily averages from lenders.
For those with top-tier credit and financials, they may only see an eighth of a point increase, but for those with lower scores and down payments, the jump could be as much as 0.375%.
“It’s going to be ugly,” said Graham. “Today is the first time since the Covid-19 market reaction settled down in March that interest rates truly have a reason to panic. Until further notice, this looks like liftoff.”
read more; https://www.cnbc.com/2020/06/05/its-going-to-be-ugly-analyst-says-as-mortgage-rates-suddenly-spike.html?__source=twitter%7Cmain
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