First Time Homebuyers & Unemployment

First time homebuyers have gained even more purchasing power in the past few weeks as mortgage rates have dipped lower.

Tomorrow’s jobs report, formally known as the Non-Farm Payroll report, could cause loan rates to jump significantly.

Wall Street watches the jobs report for clues about the health of the economy.  Employed Americans spend more than the unemployed and are more likely to keep making those mortgage payments.

Expectations are for a loss of 30k jobs last month.  A loss of more jobs could press loan rates for common first time homebuyer loan programs a little lower.  Less jobs lost or a net gain of jobs could send rates skyrocketing higher.

If Wall Street senses positive economic conditions, they’ll move money from mortgage bonds and into stocks.  When that happens, mortgage rates jump higher.

The official Bureau of Labor Statistics release hits at 8:30 A.M. ET, about an hour before most lenders release their morning rate sheets.  Tomorrow’s rate sheets will be a direct reflection of what we learn when the jobs data hits.