Posted by The Jan 7th, 2017 “New Jobs” and “Unemployment Rate” data is a potential market mover. If the data comes in around 160k new jobs and 4.7% unemployment we should see the mortgage rate rally from 2017 week 1 continue on into next week.
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Some have called the 9 week post-election rate increase the “Trump Tantrum.” It reminds me of “Taper Tantrum” which was a 1 week rate jump in the summer of 2013. Is an increase of $31.06 per $100k borrowed in a month and the increase of $13.33 per $100k borrowed from a year ago a “tantrum?”
Are Mortgage Rates Much Higher?
The media sells news. Everything for sale should not always be bought. Current mortgage rates are not far from where they were just 1 year ago.
Election Week 2016 to Today:
- 5th of Jan: 4.20% (+ .63%) ($489.02 per $100k)
- 29th of Dec: 4.32%
- 22nd of Dec: 4.30%
- 15th of Dec: 4.16%
- 8th of Dec: 4.13%
- 1st of Dec: 4.08%
- 23rd of Nov: 4.03%
- 17th of Nov: 3.94%
- 10th of Nov: 3.57% ($457.96 per $100k)
1 Year Ago (Jan 6, 2016)
- Jan 5th, 2017: 4.20% (+ .23%) ($489.02 per $100k borrowed)
- Jan 7, 2016: 3.97% ($475.69 per $100k borrowed)
To sum it up, a rule of thumb for tomorrow is that better economic news supports higher mortgage rates while worse economic news supports lower mortgage rates. Rule of thumb for calling anything a “tantrum” – not sure but saying “4….%” instead of “3….%” can’t be it!
By Jeremy House