Mortgage rates jump with jobs report

A recent employment report showed market growth that surpassed experts' expectations, inciting mortgage rates and long-term Treasury bond yields to increase. The Primary Mortgage Market Survey from Freddie Mac found the 30-year fixed-rate mortgage averaged 4.12 percent, up from 3.94 percent last week, while the 15-year fixed-rate mortgage averaged 3.37 percent, an increase from 3.26 percent the week prior.

Frank Nothaft, vice president and chief economist of Freddie Mac, said the reported addition of 103,000 workers in September, as well as a revision that found 99,000 new jobs in July and August are boosting up mortgage rates and bond yields. Nothaft pointed out, though, that the job gains are not large enough to move the unemployment rate from 9.1 percent, thus consumer confidence may remain low for some time.

For the Americans who have recently found a new job and want to purchase a home, Doug Lebda, chairman and CEO of LendingTree.com, recently shared tips on how to find the lowest mortgage rate even after they increased this past week. According to Lebda, borrowers should have at least two year's worth of documentation on hand as evidence of consistent employment and a steady income.

In addition, potential homebuyers should research different home sales in the areas and neighborhoods they are interested in to determine what a good price is for a valuable property. Before entering into a loan meeting, borrowers must also know their credit score and try not to take on new debt before applying so their score has an opportunity to improve.

More News