Mortgage rates climbed at the fastest pace in over three weeks today. The is due to the employment report that came in markedly higher than expected. This is especially important because June's employment report came in astoundingly weak. July's numbers were better, but today the "job creation" forecast called for 180,000 new jobs, and the numbers came in at 255,000 new jobs. This is good news for the economy, and bad news for mortgage rates. This impressive display in the jobs sector will greatly increase the likelihood that the Fed will hike rates by the end of the year. When this happens, rates surely rise as well. According to results from a poll prior to the NFP report today, the estimated likelihood of the Fed hiking rates was 30%, which promptly rose to 40% following the release of the report. Most lenders are pricing in at 3.5% for Conventional 30 year fixed loans with top tier scenarios. Quite a few still remain at 3.375%, however. Check back here Monday for more mortgage news and up to date mortgage rates.
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• 30 year (FRM) rates at 3.41% (+0.03%).
• 15 year (FRM) rates at 2.75% (+0.03%).
• FHA 30 year Fixed rates at 3.25% (+0.00%).
• Jumbo 30 year Fixed rates at 3.55% (+0.03%).
• 5/1 ARM rates at 2.85% (+0.02%).
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