The consumer spending pattern is based on a simple equation:

Increase in earnings = increase in disposable income = increase in spending.

However, the ‘increase in earnings’ part is largely driven by the job market. As the job market gains health, it triggers new opportunities, investments and businesses. Individuals will return home with higher paychecks. They would be willing to spend more on goods and services, or their mortgage.

The Bureau of Labor Statistics recently released the Official Employment Situation Report. It summarized all the ups and downs of the job market, its influences on the economy and overall well-being of individuals.

The points somehow are giving out a positive impact, but there are still some specks of ambiguity and uncertainty that are making investors to keep their hands off risky assets and turn towards US treasury debt. As the treasury yields fall, prices of mortgage backed securities rise, leading to a lower mortgage rate. What is your opinion – Will the wellbeing of the job market help strengthen investor’s confidence in stocks? Is this increase in disposable income enough for individuals to avoid missing mortgage payments, and to stop mortgage delinquencies from ‘break records’?

Original Blog: http://blog.mfgmortgagerates.com/?p=186

IMO It's going to take a LOT of good job reports (plus a lot of other changes in the market) to make much of an impact on the economy, interest rates, the mortgage market, etc. We didn't get into this mess overnight. There wasn't one thing that got us here... and we're not going to get out of the mess anytime soon because of a good jobs report.

Hi,


All right! But i was thinking of rife my mortgage but i hear that the mortgage rates are going to drop ever lower. any experts think that's going to happen?

It can't be forecast that mortgage rates will drop lower or touch the sky.
Thanks.