Mortgage Rates Sideways Following Jobs Report

Mortgage rates are moving sideways today after the Jobs Report this morning.  After another day of negativity in the MBSs, we are seeing them flat this morning with very little movement as well in regards to the 10yr Treasury Note.

Sept employment data did show the unemployment rate at 5.0%, up 0.1% from August and higher than 4.9% expected (the highest since last April).  Jobs were a +156K (consensus +168K), August revised from 151K to 167K, July revised from 275K to 252K. Private jobs +167K (consensus 170K). Average hourly earnings were expected to increase 0.3%, as reported up 0.2% (yr/yr +2.6%). The Fed actually pays more attention to the trend. And the three-month average is a solid 192K and the YTD average is 178K.

The August reading of Wholesale Inventories was lighter than expected.  Still up was Consumer Credit, we will be stripping out Auto and Student Loan data and focus on new revolving debt. As we continue, more Fedspeak out today which means more rhetoric.

I am not expecting much movement today after the increase in mortgage rates yesterday.  The Jobs data was mixed and shouldn't put too much more pressure on mortgage rates.  However, we are in the top part of our mortgage rate trend and if we go much higher, mortgage rates could really move.