{"id":3497,"date":"2024-10-12T14:43:42","date_gmt":"2024-10-12T14:43:42","guid":{"rendered":"https:\/\/femmes-mag.net\/?p=3497"},"modified":"2024-10-12T14:43:42","modified_gmt":"2024-10-12T14:43:42","slug":"mortgage-rates-spike-after-stronger-than-expected-jobs-report","status":"publish","type":"post","link":"https:\/\/femmes-mag.net\/en\/mortgage-rates-spike-after-stronger-than-expected-jobs-report\/","title":{"rendered":"Mortgage rates spike after stronger-than-expected jobs report"},"content":{"rendered":"

The average rate on the 30-year-fixed\u00a0mortgage<\/a>\u00a0jumped 27 basis points Friday morning following the release of the government\u2019s monthly\u00a0employment report<\/a>. The rate is now 6.53%, according to Mortgage News Daily.<\/p>\n

That is 42 basis points higher than Sept. 17, the day before the Federal Reserve\u00a0cut its benchmark rate<\/a>\u00a0by half a percentage point.\u00a0Mortgage rates do not follow the\u00a0Fed<\/a>, but they loosely follow the yield on the\u00a010-year U.S. Treasury<\/a>.<\/p>\n

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For mortgage rates, it is all about what the expectation is next for the Fed. As such, there was a lot of anticipation leading up to this particular monthly report, since the last two pointed to weaker labor market conditions.<\/p>\n

\u201cIndeed, the Fed\u2019s decision to cut by 0.50 vs 0.25 last month had much to do with the fear\/expectation that reports like today\u2019s would be in shorter supply going forward,\u201d wrote Matthew Graham, chief operating officer at Mortgage News Daily.\u00a0\u201cThe only salvation here would be the notion that this is just one jobs report in a recent run that\u2019s been mostly weaker and that perhaps the next one won\u2019t be so damning for bonds.\u201d<\/p>\n

However, the report does shift the outlook slightly for rates going forward, since most had assumed the trajectory would be lower.<\/p>\n

\u201cMBA\u2019s forecast is for longer-term rates, including mortgage rates, to remain within a relatively narrow range over the next year,\u201d the Mortgage Bankers Association\u2019s chief economist, Michael Fratantoni, wrote after the jobs report was released. \u201cThis news will push mortgage rates to the top of that range, but we do expect that mortgage rates will stay close to 6% over the next 12 months.\u201d<\/p>\n

Today\u2019s homebuyers are highly sensitive to rate moves, as\u00a0house prices<\/a>\u00a0continue to rise from year-ago levels. There is also still very low inventory on the market, which has only served to keep prices higher. Rates are a full percentage point lower than they were a year ago, but the housing market has not seen much of a boost yet.<\/p>\n\n\n

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The average rate on the 30-year-fixed\u00a0mortgage\u00a0jumped 27 basis points Friday morning following the release of the government\u2019s monthly\u00a0employment report. The rate is now 6.53%, according to Mortgage News Daily. That is 42 basis points higher than Sept. 17, the day before the Federal Reserve\u00a0cut its benchmark rate\u00a0by half a percentage point.\u00a0Mortgage rates do not follow …<\/p>\n","protected":false},"author":3,"featured_media":3498,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111],"tags":[],"class_list":["post-3497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgage"],"_links":{"self":[{"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/posts\/3497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/comments?post=3497"}],"version-history":[{"count":2,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/posts\/3497\/revisions"}],"predecessor-version":[{"id":3503,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/posts\/3497\/revisions\/3503"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/media\/3498"}],"wp:attachment":[{"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/media?parent=3497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/categories?post=3497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/femmes-mag.net\/en\/wp-json\/wp\/v2\/tags?post=3497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}