To say that May’s total of only 38,000 jobs added was disappointing would be an understatement, but that doesn’t mean there isn’t a silver lining that can be associated with it.
Realtor.com reports that since the number of new jobs created hit a five-year low in May, mortgage rates are expected to stay right where they are near historic lows, or possibly fall even further. That’s good news, especially when coupled with the fact that we are just entering the summer months, peak homebuying time.
On Friday, June 3, mortgage rates were at an average of 3.7 percent on a 30-year-fixed loan. While a lower mortgage rate probably won’t result in more loan applications, it does increase the number of applications that are likely to be approved.
The lower rates could also help homeowners who have not yet refinanced. However, since low rates have been available for some time now, that number is not expected to increase by much.