ADP Employment Report may Point to Lower Interest Rates.
This morning's ADP Employment report came in weaker than expected. This could help the Federal Reserve to make the decision to start lowering their Federal funds target rate sooner than later. While most analysts do not see them lowering the rate immediately, many are now projecting the Fed to lower their target funds rate by a full 1% by the end of the year. If this happens, it could have a significant impact on 30-year mortgage rates.
So, What Do I Do with That?
We encourage you to read our blog post from April 28th, but the bottom line is that when mortgage rates start to drop, more home buyers may be bidding up the price of homes. We could see a significant price escalation. The smart move could be to buy a home as soon as you can to lock in today's price and then refinance if and when rates go down.
Of course, this report is only one data point. And analysts can change their projections. But this is certainly worth considering if you are thinking of buying a home!