Mortgage Rates Today, Friday, Aug. 5: How Today’s Jobs Report Will Move Interest Rates

Mortgage Rates, Mortgages
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Mortgage Rates Today, Friday, Aug. 5: How Today's Jobs Report Will Move Interest Rates

Thirty-year mortgage rates are down a notch Friday, while 15-year fixed home loans and 5/1 ARMs moved a tick higher, according to a NerdWallet survey of mortgage rates posted by national lenders this morning.

There was little direction for mortgage rates prior to this morning’s jobs report. But that report may not be good news for interest rate watchers.

How the jobs report may move mortgage rates

This morning’s U.S. employment report has the potential to influence mortgage rates, as the bond market reacts to the news and lenders reprice their loan offerings. Bad news for the economy is usually good news for mortgage rates. However, today’s jobs report was much better than economists’ expectations, with nonfarm payroll employment up by 255,000.

“Since bonds tend to thrive in weaker economic conditions, this was clearly bad news for mortgage rates,” Al Bowman, with Mortgage Commentary Services in Tampa, Florida, said in a report to clients. “The reaction in the markets is somewhat textbook with stocks reacting favorably to stronger economic news and bonds coming under pressure. It is a relief to see that the bond market losses appear to be under control, meaning it did not go into a major sell-off after the report was posted.”

Bowman also says the positive jobs report raises the possibility of a September short-term interest rate hike by the Federal Reserve.

The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:

Purchase Mortgage Rates: Aug. 5, 2016

(Change from 8/4)

30-year fixed: 3.58% APR (-0.01)

15-year fixed: 3.00% APR (+0.01)

5/1 ARM: 3.47% APR (+0.01)

 


Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

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Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: hal@nerdwallet.com. Twitter: @halmbundrick.