Although a fairly rotten monthly jobs report was released on Friday, mortgage rates barely budged for the week ending February 7, 2104.  In general, a poor employment report is good news for mortgage rates.  When job creations are weaker than expected, economic conditions are considered soft which leads to less demand for goods and services.  With low demand, prices will generally hold keeping a lid on inflation, a key component to nominal interest rates, and demand for loans will usually stay at depressed levels.  All of these factors lead to lower interest rates and borrowing costs.  This time, the poor data in the jobs report had only a minor impact on mortgage rates at the end of the week and on average, mortgage rates bumped just ever so slightly higher.

The popular 30 year fixed rate mortgage climbed by a very small, 2/1000ths of a percent compared to the average rate available in the previous week.  The average 30 year fixed rate mortgage increased to 4.398 percent from 4.396 percent in the previous week. 

FHA and jumbo mortgage rates followed suit with a little more vigor, climbing on average by three basis points or 0.03 percent.  The average rate on the 30 year jumbo home loan inched up to 4.262 percent from 4.237 percent in the week earlier and the average 30 year FHA mortgage rate crawled just past the 4.00 percent mark and ended the week at 4.013 percent after closing at 3.978 percent in the preceding week.         

The shorter term home loan rates were a bit of a mixed bag.  The average rate on the 20 year term mortgages moved higher while the 15 year term conforming loan rate moved lower.  15 year mortgage rates were cheaper by just 6/1000ths of a percent moving the average rate to 3.503 percent from 3.509 percent in the week earlier.  The 20 year home loan gained 2/1000ths of a percent to 4.163 percent and the ten year mortgage moved up by 4/1000ths of a percent to 3.187 percent.

All in all, very few changes in the average rates offered by the nation’s largest mortgage lenders for the week ending Feb 7, 2014.  And, although the jobs report did not push rates lower as one might expect, 2014 has been a good year thus far for new home loan borrowers with rates moving measurably lower since the start of the year. 

The most recent weekly bank mortgage rate survey calculates the average rate offered on a variety of home loan products from the nations’ largest bank mortgage lenders for the week ending February 7, 2014.  Included in the current bank mortgage rate survey are the mortgage rates of Wells Fargo, Chase Bank, Citibank, US Bank, HSBC Bank, Fifth Third Bank, SunTrust Bank, BB&T Bank, as well as other top bank mortgage lenders across the nation. 

The mortgage rate information obtained in the mortgage survey assumes the purpose of the mortgage loan is to purchase an existing single family home to be used as a primary residence with a loan amount of $250,000 and an estimated property value of $325,000.  The current mortgage interest rates may vary without prior notice from the mortgage lenders and are subject to change based on location, geography and other terms and conditions.

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