Rates increasing... but still Low
The Labor Department said 162,000 jobs were added to payrolls in March. Economists had forecast employer would add 190,000 jobs.
The report adds further evidence that the economy is recovering, even though jobs were created at a slower pace than forecast. Investors often sell Treasurys and favor riskier assets like stocks and commodities when the economy is improving.
That’s because investments other than Treasurys traditionally provide the potential for bigger profits. Inflation also typically increases when the economy is strong, so rates must move higher to keep pace.
Interest rates have been creeping higher in recent weeks as more data shows the economy is on the upswing, even if growth is slow. Friday’s jobs data just adds to that string of upbeat reports.
The yield on the 10-year note maturing in February 2020 rose to 3.93 percent from 3.87 percent late Thursday. The yield on the 10-year note is often used as a benchmark for consumer loans. Its price is down 11/32 at 97 18/32.
The yield on the 10-year note is approaching 4 percent for the first time since October 2008, around the time the credit crisis peaked and investors poured money into the safety of bonds.
With economic forces putting pressure on rates to rise, NOW IS THE TIME TO LOCK IN YOUR MORTGAGE RATES!!!
-Call today. Gary Schoenholz – Mortgage Manager – 864-979-1111
-www.GaryTheMortgageExpert.com – 16+ years of experience.
