The April unemployment numbers released by Department of Labor played a one night magic spell on the mortgage rates. This made the rates skyrocket within two days before the Memorial Day weekend. It may have caused tension for loan borrowers, but according to analysts, the mortgage rates will take a dip shortly.
Although, the sudden increase of 0.08% from last week may seem too high but it is still lower than the last year 4.02% in the month of May. The turmoil may cause the rates to increase for a while but everything will come back in sometime, say experts. The loan borrowers can keep their peace of mind and relax, although it might take couple of weeks.
The slight decrease of 0.1% in unemployment rate might not be very helpful to the economy adding just 1,14000 jobs, but it certainly did the needful to boost up mortgage rates.
A potential home buyer here needs to understand the situation and act accordingly for the highest possible benefits. The rates are still volatile and therefore hard to predict the trend. With Feds pumping close to $80 million into the mortgage industry with their bond buying, analyst predict mortgage rates will remain under check till they put a cap on it.
However, if you are a potential home buyer or paying more than 4% as of now, then getting started with loan paperwork would be the best thing for you. Get started with the paperwork and collect the past three-year tax transcripts through submission of 4506-T form.