Mortgage Rates Drop Further on Weaker than Expected Jobs Report

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Quicken Loans Chief Economist comments on employment report and mortgage rate drop.

This morning the U.S. Department of Labor released their Employment Situation report for the month of May 2005. This report measures the number of unemployed as a percentage of the labor force and is a primary monthly indicator of economic activity.

"This morning's employment report showed that only 78,000 new jobs were created in May, despite forecasts that called for 175,000 new jobs. The report shows potential deceleration of job growth and economic weakness. Bond market bulls are cheering because they are translating this data into lower inflationary expectations," said Bob Walters, Chief Economist for Quicken Loans (, the nation's largest online lender per rankings compiled by National Mortgage News.

"As a result of this report, the 10 year Treasury yield has dropped to 3.83%, a level not seen since 2004: it's again approaching 40 year lows. In turn, mortgage rates continue this year's unanticipated drop presenting consumers with tremendous options whether they're thinking about buying a home or refinancing to a lower rate."

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Editor's Note: Bob Walters, Chief Economist at Quicken Loans, is available for comment.


Todd Krieger

Quicken Loans


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