Rates Face High Stakes in Jobs Report; Construction Spending Flat; Housing Could Anchor Troubled Economy

Rates Face High Stakes in Jobs Report; Construction Spending Flat; Housing Could Anchor Troubled Economy

Mortgage Rates were slightly higher today, bringing them near their worst levels in several weeks. The caveats are twofold. First of all, the worst levels of the past several weeks are some of the lowest rates in history. Apart from July/Aug 2016 and scattered occasions in late 2012, rates are the lowest they've ever been. Second , recent rate movement has been contained in a tight range, meaning that today's rates aren't that much higher than the lowest rates over the past few weeks. Most lenders continue quoting conventional 30yr fixed rates of 3.375-3.5% on top tier scenarios. If there is one day with the power to cause more meaningful movement, it's tomorrow. In fact, we could easily see the first major break above the recent range if tomorrow's Employment Situation report (aka "jobs report