The US Department of Labor provided news of a healthy U.S. labor market in its most recent job report: layoffs are currently rare and initial unemployment claims are at a 15-year low. This means that businesses are not concerned with the economy slowing down in the first quarter of 2015, but numerous instabilities prompted an unusual dual sell-off in both stocks and bonds over the last two days. More volatile securities like stocks and less volatile securities like bonds often respond to market news in opposite directions. Simultaneous decreases, even slight ones like the current one, signify divestment from the market rather than the reorganization of portfolios. Mortgage bonds decreased slightly in this downwards trend, which pushed average mortgage rates slightly higher. Conforming no point 30 year fixed rates continue to average approximately 3.75 percent but 15-year rates are now averaging 3.125%.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.