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Unemployment rates down in most of U.S. states

Unemployment rate chart by state
Unemployment rate chart by state
Bureau of Labor Statistics

The Bureau of Labor Statistics (BLS) released lower unemployment rates for the U.S. and individual states today prompting a sell off of mortgage backed securities (MBS).

Forty states had lower unemployment rates for April than for March while non farm payroll employment increased in 30 states, decreased in 18 states and the District of Columbia and remained the same in two states. The national unemployment rate remained nearly the same at 7.5 percent while several states were significantly lower and higher.

The lowest unemployment rate went to North Dakota at 3.3 percent, while the highest was Nevada at 9.6 percent. The largest decline in unemployment for the year was for Nevada, dropping 1.9% from April 2012. Washington saw a drop in unemployment month over month from 7.3 percent to 7.0 percent and year over year from 8.4 percent to 7.0 percent.

As of noon eastern time today, mortgage backed securities had dropped 53 basis points from the end of yesterday. If this trend continues, home loan interest rates could start to spike in the near future.

About the author: Fred Chamberlin was a senior loan officer with Guild Mortgage Company in Oak Harbor. He was in the mortgage origination business for over 20 years and in the lending business for over 30 and authors a number of mortgage related blogs.

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