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On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls data from the month prior. It's a mortgage market mover and today is proving the point.

How Jobs Data Changes Rates
The Non-Farm Payrolls data is more commonly called "the jobs report" and it's a major factor in making mortgage rates and, hence, monthly payments for homeowners in Cincinnati and everywhere else.

Especially at this point in history.

With the recession officially over and growth returning to the U.S. economy, the recovery's next big frontier is jobs. Because mortgage rates have been partially beat down from weak jobs data, it follows that on strong jobs data, rates should rise.

Jobs Growth Is Trickle-Up For Housing
The jobs report is a keystone with respect to home affordability figures. Here's why:

1.As the number of working Americans grows, so should consumer spending
2.As consumer spending increases, so should a return to risk-taking on Wall Street
3.As risk-taking returns to Wall Street, bond markets should start to lose
Mortgage rates, as a result, tend to rise when more Americans enter the workforce versus leaving it.

Furthermore, job growth gives renters confidence to buy their first home, and existing homeowners confidence to up-size. With more home buyers in a given market, there's going to more competition for homes. Higher home prices typically follow.

Job growth can be trickle-up for housing.

May 2010 Jobs Report Is Great For Rates
But what about when the jobs report is "bad"? Like today.

According to the government, 431,000 jobs were created in May, but of those new jobs, 95.4% represented temporary staffing for the 2010 Census. That's staggering -- even as the Unemployment Rate dipped to 9.7 percent.

The number of private-sector jobs created last month fell well short of expectations and Wall Street is voting with its dollars right now. Stock markets are off, bond markets are up, and mortgage rates are lower versus yesterday's close.

Call it a boost for home affordability. It's a good day to lock a mortgage rate.

Use The Jobs Report To Your Advantage
If you haven't given a loan application to your loan officer, do it today. And think about locking, too. Yes, yes, yes... it's important to shop around. But take too long to shop and you risk rates moving higher.

It happens all the time. And it's an awful feeling to know you missed the "lowest rate" because you got greedy so call me now and let's lock and doc your loan today (current loan approval must exist and all PTD conditions must be satisfied)

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