UNEMPLOYMENT FIGURES CAUSE INTEREST RATES TO RISE

Interesting analysis from WendyC@LoanCentral.com:

Unemployment figures were released today and contained some mixed information. The unemployment rate fell from 9.4% to 9%, shocking many analysts who had expected it to rise slightly. Many experts are scratching their heads trying to figure out how we got to this number. The drop to 9% indicates that 504,000 people from the previous month are no longer unemployed. It’s a good bet that these folks didn’t find a job, but instead have left the labor force because they can’t find a job, or are discouraged.
Signs of economic recovery cause mortgage rates to rise. The markets were very volatile today and interest rates are up on the day. Further interest rate increases are expected with many analysts predicting rates will be around 5.5% by year end, which results in a loss of buying power of approximately $30,000 on a $400,000 sale price.
As of this moment, the Fed Fund Futures, which forecast when the Fed will hike interest rates, has moved from a Monday reading of a 52% chance that they will hike in January 2012…to today’s reading of a 100% chance of a Fed hike at that meeting.
Don’t miss out on these historically low interest rates…now is the time to lock your rate under 5%!