Mortgage Market Summary as of January 8, 2018

Mortgage Rates Better at First, Following Weaker Jobs Numbers

Mortgage rates moved lower following a weaker-than-expected jobs report.  The so-called "jobs report" (officially "The Employment Situation") is--on average and over time--the most important piece of economic data on any given month.  While it has recently taken a back seat to the likes of the Consumer Price Index (CPI... an inflation report), it always has the power to move bond markets.  Bonds, in turn, move mortgage rates.

Friday's jobs report missed the mark.  In December, the U.S. economy added 148,000 jobs, compared to market estimates of 190,000.  The traditional implication is for slightly lower rates, and that's exactly what happened... at first. 

Apart from the aforementioned CPI report, economic data has generally been less important to rates than it has been in the past.  The reaction to the jobs data was quick, shallow, and ultimately reversed within an hour.  Still, it provided a temporary boost that allowed lenders to offer rates that were just slightly lower than previous day.

Bonds weakened heading into the afternoon.  Several lenders responded by issuing rate sheet adjustments (for the worse).  Lenders who didn't reissue rates may need to account for the weakness today. 

Lenders continue to be more competitive with their investor guidelines and terms.

Here’s the latest good news for one of Guaranteed Rate's main Jumbo lenders in expanding their product parameters…

  • $1,000,000 Loan Amounts for 80/90% CLTV (Combined Loan to Value) meaning 10% down to qualify
  • Minimum FICO 680
  • 6 months reserves

Courtesy of Rick Lombardo 310.435.7439,, VP of Mortgage Lending at Guaranteed Rate.

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