Utah Home Mortgage Rates Tied To Employment !!
Even though employment in Utah is among the nations highest, it makes little difference when it comes to how lenders price Home Mortgage rates. A downturn nationaly and the effects are felt in Salt Lake County, Davis County, Utah County as well as Tooele County just as if they were in Detroit.
The economy shed 539,000 jobs in April, raising the 6-month total to nearly 4 million jobs lost.
And while the April data may look bad, it's actually 10% better than what was expected.
As a result, it's turning into a bad day to be shopping for mortgage rates.
After bottoming out early last week, conforming, 30-year fixed rate mortgages have risen in cost by as much as three-quarters of a percent. Today's good-for-the-economy report may push costs higher still.
Now, it may seem odd to categorize 539-thousand lost jobs as "good-for-the-economy", but it's important to remember that on Wall Street, expectations are everything.
Investors are constantly buying and selling securities based on what they think will happen in the future. And, up until this morning, there was an expectation that 600-thousand jobs had been lost in April.
As it turns out -- relative -- the actual job loss data wasn't so bad.
Now, markets are making adjustments and re-forming expectations of what's ahead for the economy. They're preparing for things like higher levels of consumer spending in the months ahead, and fewer home foreclosures nationwide. Both outcomes would help to spur the economy from recession.
This helps explain the stock market's early rally, too.
For now, mortgage markets remain sensitive to whiffs of an economic recovery. In general, if there's good news for the country, it going to be bad news for Utah mortgage rates.
Utah Home Mortgage rates are off slightly in advance of the weekend.
To stay current with Utah interest rates, in fact to stay up to the minute on any news that could effect the Real Estate Market, visit our werbsite, Utah Real Estate. You can search for homes in Davis, Utah, Salt Lake and Tooele Counties, meet trusted mortgage lenders online, or find out where all the Utah bank owned homes for sale are located.
Or just call us at 435-840-5029 to talk about anything about Utah Real Estate, aand Utah Home Mortgage rates.