Mortgage Rates Paradoxically Steady After Jobs Report

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Posted To: Mortgage Rate Watch

Mortgage rates must really like being where they are right now, because they’ve been at roughly the same levels for the past 5 days! Not only is this highly out of character for 2018, it’s not even that common in general (might happen a few times a year, historically). And while the stability was relatively easy to reconcile during the first 4 days of the week, it comes as a surprise today. Reason being: the important jobs report was much stronger than expected and bond markets (which underlie rates) reacted in a clearly negative way. In other words, bonds suggested that rates should move noticeably higher today. There are two ways to make sense of this. On one hand, yesterday’s bond market movements suggested improvement in rates that never materialized. In that sense, we were “owed,” for…(read more)

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