Mortgage rates moved lower after this morning’s Employment Situation Report, though not necessarily because of it. After 2 days spent correcting from strong move lower in stock prices and bond yields, markets had had enough. In other words, global financial markets moved one way from December 29th and then the other way on Wednesday and Thursday. That left today as a bit of a wild card.
Soon after the big jobs report, it became clear that stocks and bond yields (which are analogous to mortgage rates) weren’t willing or able to go any higher. The bounce back in the other direction was fueled by overseas headlines concerning the hostage situation in France. European markets led US bond markets back toward lower rates into the noon hour. When Europe closed, domestic markets were obviously done with that move, but didn’t snap quickly back into weaker territory. This allowed many mortgage lenders to drop rates in the early afternoon.
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