Mortgage rates rise .125% to .25% on the expectation of the Fed raising the prime rate, and on the stronger than expected payroll numbers…

The economic news this week was thin but powerful.

ADP (the payroll processing company) employment report on Wednesday stated a private payroll jump to 298,000 jobs created , much higher than expected. That  sent investors in a tizzy; rates jumped up a bit, and investors started white-knuckling for a blowup jobs report on  Friday.

The Friday jobs report from the government said that jobs created were 239,000, and the jobless rate dropped from 4.8% to 4.7%. Much softer, and much more in line with expectations.

With the Federal Reserve hinting even more that they feel a rate increase seems now warranted for March, the markets are still on pins and needles. Will the Fed Funds Rate (and the prime rate to us the borrowers) go up .25% or .5% ?

Why wait to find out? Lock in your mortgage rate this weekend or by Monday before emotions run wild on Wednesday when the Fed announces their decision.

If you are wondering when to be on pins and needles, we are with the major monthly indicators, but then especially on the dates below.

Dates of FOMC meetings (taken from Federal Reserve website)






Don’t gamble: lock in your rate.

Need to lock in for 60, 90 even 180 days? Yes, we can do that on a purchase!

Your buyer’s interest rates can be locked in, so if you have a client who is close to having an accepted offer and is nervous about rates we can lock that interest rate in.

Remember, we also have the float down: if rates improve more than .25% after lock-in and after full approval, your client gets the lower rate.  All rates are quoted at a 45 day lock in and assume a 720 credit score with 20% down, except for FHA and VA.

Have a great week, and call me if you need anyone qualified.