Residential Finance Corp. Mortgage Market Review: Unemployment Numbers Likely Effect on Short Term Rates

| October 6, 2012 | 0 Comments


According to the Residential
Finance Corp.
Mortgage Market Review – which tracks leading
economic indicators and offers an outlook on their expected effect on
the mortgage market and housing sector – the significant decrease in the
jobless rate and increase in the number of jobs created in September
will likely cause a slight, short-term uptick in mortgage interest rates.

“The numbers will not, however, affect the Federal government’s recent
commitment to purchase $40 billion of mortgage-backed securities,
monthly, for the near term,” stated Residential
Finance Corp.
(RFC) chief market strategist and mortgage industry
expert, Barry Habib. “The economy is not showing a significant enough
improvement, making these asset purchases critical to helping the
industry, and economy, move forward. The expected short-term volatility
and rate increase will be just that – short term – as we expect to see
rates settle back to current lows driven by the Fed’s asset purchases.”

The Department of Labor Statistics reported today that the
unemployment rate has dropped by 0.3 percent to 7.8 percent and 114,000
jobs were added during September. “This significant decrease in
unemployment is not likely to have an impact on the overall economy
until and unless the decrease were to become a trend with continued
improvements over another two-to-three months,” Habib explained.

“Earlier this week, we correctly recommended to our customers that they
lock at the current, low rates prior to the jobs announcement. This
proved to be a great recommendation that served our customers well,”
Habib said. “For those who haven’t yet locked in a rate – there is still
time. We actually expect long-term rates will likely move lower in the
future due to the continued asset purchase and the commitment to keep
the Fed Funds rate low.”

Habib encourages consumers who are still on the fence regarding
refinancing to start the process in the next couple of months in order
to take advantage of the still historically low rates.

About Barry Habib

Barry Habib is vice president and chief market strategist at Residential
Finance Corp. Habib is a frequent speaker on financial markets, housing,
negotiation, sales training, building relationships, technical trading
analysis and staying motivated at industry events and conferences. He
appears regularly on Fox Business Network and CNBC Network where his
segment, The Monthly Mortgage Report has appeared for over 13 years
on Squawk Box.

About Residential Finance Corp.

Founded in 1997, Residential Finance Corporation (RFC) (,
offers homeowners and homebuyers nationwide a wide range of home
mortgage loan options, including special lower-rate government-insured
FHA and VA loans, residential mortgage loans, jumbo mortgage loans, and
reverse mortgages. RFC’s highly-trained staff delivers mortgage
expertise and customer service excellence, winning the company many
awards, including Columbus Business First Corporate Caring Award, Columbus
Business Journal
Best Place to Work, Florida Trends Best Company in
Florida, American Business Award Sales Department of the Year,
Inc Magazine
INC5000 Fastest Growing Company, and American Society
of Training and Development Excellence in Practice. Headquartered in
Columbus, Ohio, RFC has branches throughout the country, and is seeking
loan officers and branch managers to join their network of branches. For
more information contact, Jessica Manna at 614.255.4317 or
NMLS#1652. Equal Housing Lender. Equal Opportunity Employer.

Filed Under: Credit Card News

Leave a Reply

You must be logged in to post a comment.

Get Adobe Flash player