The mortgage industry has seen a large jump in its rates over the past few weeks – the highest it has been this year reaching over 7% on a 30-year fixed-rate loan. This marks the highest since November of last year, but it also indicates a strong and healthy economy.
The recent uptick in mortgage rates coincides with strong private sector employment growth of almost 500,000 jobs in just a month. This is the largest single-month gain since 2015 and also significantly beat expectations. This new job growth can help to increase household incomes for many, while also providing additional urban spending. This increased spending power will bolster the economy and could potentially bring further increases to mortgage rates as the year progresses.
Main Points:
– Mortgage rates had a large increase, reaching over 7% on a 30-year fixed-rate loan – the highest rate since November the year before.
– Private sector employment added nearly 500,000 jobs in one month, which is the largest single-month gain since 2015 and exceeded expectations.
– Increased household incomes and urban spending could bolster the economy and may lead to further increases in mortgage rates.
You can read this full article at: https://www.housingwire.com/articles/opinion-the-hidden-opportunities-of-high-mortgage-rates/(subscription required)
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