Mortgage Rates Pushing Higher After Jobs Report

Each month we get the BLS (Bureau of Labor Statistics) employment details, most every month we get surprises. Today this Jobs Report was no different. Treasuries and MBSs are under pressure this morning after a nice bounce yesterday but holding so far this morning. Strong jobs but less inflation may hold the 10, but with the FOMC scheduled to increase rates on the 21st and global growth momentum increasing, the ECB is now hinting it will be winding down its stimulus as it is difficult to forge a bullish outlook for interest rates.

Where Are Mortgage Rates Going?                     

>>> Monthly Jobs Report is pushing the rates

The monthly jobs report for February showed that 313,000 jobs were added to the U.S. economy during that month, which blew past expectations of the 205,000 that analysts had expected. Even the high end range was only 230,000.

The report does have one glaring weak point which is on the inflation concerns, average hourly earnings were expected at 0.2%, and came in at 0.1%.  This has been the key part of the report that investors have been closely watching - and after the previous month’s strength, today’s reading was a bit of a disappointment. However, despite the wage growth weakness, a headline reading as strong as this one is incredibly rare, and it certainly has financial markets abuzz this morning.

All of the major market indexes are trading higher today by a little less than 1.00%. With investors moving more into stocks, there is less money going into bonds, pushing Treasury yields higher.  The yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going), is up and flirted again at 2.90%, which is the highest point this week, but is one tick below that as I finish this report.

Mortgage rates typically move in the same direction as the 10-year yield, so rates are moving slightly higher right now as we approach the weekend.

Rate/Float Recommendation           

>>> Take action and try and get the best rate

Mortgage rates are on the rise, and now with another week of them going higher, we do not see them calming down any time soon.  Right now the trend is not our friend, and the idea to float is a dangerous move that may lead to higher levels than where we are now.