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Mortgage Rate Update 08/06/2020

Sean Zalmanoff with Better Rate Mortgage has an update on mortgage rates. Watch the video and read below for details.

Sean Zalmanoff here with this week’s mortgage rate update for you. Hey man, I’m coming to you a little bit late in the week. It is busy in the mortgage where there are a lot of people buying houses. They’re already a lot of people refinancing. Rates are amazing right now, so make sure that you’re taking advantage of this yourself. There is one thing that I want to show you in the market quickly this morning.

This is a graph of mortgage backed securities that we follow on a daily basis for you. I follow this so you don’t have to, you can just come here to get your news. In general, green is good and red is bad. As prices go up, rates go down. Is it you’re looking at this chart and wondering, what would that mean? Rates are going up. If you just look at the last three days, we have tiny little red marks on the last three days, no major concern long term. These good rates are here to stay for a little while, but it does look like we may have hit some resistance and there’s a certain candlestick pattern forming there. That means that we could have some selling pressure and rates could move up slightly.

So, if you’ve got a loan that you’re about to close on, you want to lock in these rates right now. It would be a good time to consider doing that just in case there’s any market move again, nothing big, maybe an eighth, maybe a quarter, not a big deal for you. But want to make sure that you are protected and that you take advantage of this.

So, we got news for you. Today, 1.186 million new initial jobless claims hit the floors, hit the markets today. In general, and any other time, this is a terrible number, one point anything million people who are now unemployed or who are fresh on the jobless market is never something we want to see. Although, this is the lowest initial jobless claims number that we’ve seen weekly since COVID-19 struck us all. So, it is a glimmer of hope and some good news that could happen there for us.

The ADP number yesterday was announced, it missed big for the month of July. It’s always trailing a month. But May and June revising and going higher. So, the balance out, actually the stock market, if you saw a rally, is pretty good yesterday actually on that news, but it’s like, what’s to come next? And that is something that we obviously don’t know, and that we need to be concerned about, of course, for your real estate needs, your mortgage needs and just your friends and family in general as how this recovery is really going to take hold. Congress is trying to work through the next stimulus package right now. So, hopefully we get that in the hands of the people who really need it as soon as possible.

The BLS number comes out tomorrow. So the Bureau of Labor Statistics, say that five times fast, the Bureau of Labor Statistics. So, this is the government report. So, ADP that I was mentioning that came out yesterday is the private sector report. The Bureau Labor Statistics is the government report, this will report private and private and government jobs. And so this is a huge number. This always comes out on the first Friday of the month unless it happens to be that the first Friday of the month is the first day of the month. Don’t worry about it. It comes out one of the very first few Fridays of the month.

This number’s big. This number is market moving. And a very strong number. How it relates to you in the mortgage world, it’s going to make rates go up. A weak number is going to signal more weakness in the economy and it is going to make rates drop. Another reason that it may make sense to walk today ahead of that. Again, no cause for concern, these rates are great. Like really, it’s almost like we’re giving money away these days.

Hey, if you need somebody amazing to help you with your loan, my team is here, and we would love to help you. Of course, we’re based here in St. Louis, Missouri, but we do loans in about 40 States throughout the country. And if we can’t help you, I know somebody who can. Thank you all for your time. Have a great day, peace out y’all.

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