Mortgage Rates Drop Following Weak Employment Report
Mortgage rates have recently declined, influenced by new employment data that has caused ripples in the bond market. These rates are closely tied to the performance of bonds, which respond to various economic reports, especially those regarding employment.
Impact of Employment Reports on Mortgage Rates
This week, several crucial employment reports were released, highlighting ongoing trends in the job market. Although the most significant report is expected next Wednesday, today’s data has also played a crucial role.
Key Employment Metrics
- Planned Layoffs: A lesser-known report showed that planned layoffs at large companies were the third highest since 2020.
- Jobless Claims: The weekly jobless claims report indicated a slight uptick, moving up to higher levels after weeks of lower averages.
- Job Openings Data: December’s job openings data revealed the lowest levels since September 2020, significantly below forecasts.
The response from the bond market was notable. There was a shift in expectations regarding Federal Reserve rate cuts, though this should not be confused with direct impacts on mortgage rates. Following these reports, the average lender reverted to the lowest rates of the week, despite a brief period of elevated rates.
Current Mortgage Rates Trends
Currently, mortgage rates are within a narrow range of 6.15% to 6.20%. This fluctuation is significant, showing the sensitivity of the market to recent employment data.
As we await the comprehensive jobs report next week, investors will be keenly watching how these metrics continue to influence mortgage rates and the broader economy.
