Strong Jobs Report: What It Means for Mortgage Rates

The U.S. added far more jobs than expected in May, and that could put upward pressure on mortgage rates. Here's what California homebuyers and homeowners should know right now.

The latest jobs report came in much stronger than Wall Street anticipated — the U.S. economy added a significant number of new jobs in May, crushing earlier forecasts by more than double. Meanwhile, the unemployment rate remained relatively stable.

So what does this mean for mortgage rates? In general, a strong labor market signals a healthy economy, which can push mortgage rates higher. When more people are working and spending, inflation concerns tend to rise — and rates often follow.

For California buyers and homeowners, the takeaway is simple: the window of relatively stable rates may not stay open for long. If you've been sitting on the fence about purchasing a home or refinancing your current mortgage, now is a good time to take a serious look at your options.

A few things to keep in mind:

- Rate environments can shift quickly after strong economic data.

- Locking in a rate sooner rather than later could save you money over the life of your loan.

- Exploring your options costs you nothing — many lenders offer soft credit checks that won't affect your credit score.

Don't wait for rates to move against you. Contact us today to review your options and find a loan that fits your budget.