Payroll Numbers Should Mean Low Rates for Real Estate Investors:- The much anticipated Unemployment Report and Non-Farm Payroll numbers were released on schedule last Friday and interest rates were on a roller coaster throughout much of the day, ending a bit better when the final bell rang. The figures wererates to remain low for the month of November, taking into consideration the Thanksgiving Holiday as well as having a full accounting of employment, not skewed by a partial government shutdown.

The unemployment rate actually fell by a wider than expected margin from 7.3 percent in October to 7.0 percent in November. The number of new jobs created was again higher than anticipated with 203,000 people finding new, non-farm employment. Initially, the relative good news hit interest rate markets hard, fearing a sooner rather than later Fed tapering of the current QEIII program. Previously, the Fed has stated that the unemployment rate should hit 6.5 percent before any easing of the program makes sense.

In the early morning hours, the 30 year fixed rate mortgage rose nearly one-eighth of one percent. That doesn’t sound like very much of an increase but financing over the long term, it’s an added burden. Yet when the dust settled last Friday, mortgage rates recovered and actually dropped slightly. It appears that both the stock and bond markets have already priced in any Fed moves. The Fed’s ending of the $85 billion per month bond buying binge is imminent and markets appear to be poised for that now rather than later.

What does that say for the prospects of mortgage rates for real estate investors? The outlook remains good.  The economic numbers being reported over the past year remain tame. Positive, but still tepid. The economy is nowhere near a white-hot recovery causing the Fed to take other actions beyond ending the QEIII program. For real estate investors, this means interest rates should remain in this range for quite some time, well into next year.