From CNBC: 2024-10-04 13:53:26

The average rate on the 30-year-fixed mortgage rose to 6.53% after the release of the government’s employment report, up 27 basis points. This rate is 42 points higher than before the Fed’s recent rate cut. Mortgage rates correlate with the 10-year Treasury yield, but also depend on expectations of future Fed actions.

Expectations for the Fed’s next moves heavily influence mortgage rates, with anticipation building around monthly employment reports. The recent report, indicating weaker labor market conditions, has shifted the outlook for rates as most had predicted a downward trajectory. Mortgage rates are expected to hover around 6% in the next year, according to the Mortgage Bankers Association.

Today’s homebuyers are closely monitoring rate changes as house prices continue to rise. Despite rates being lower than a year ago, the low inventory in the market has kept prices high. The housing market has yet to see a significant boost, even with rates one percentage point lower than last year.



Read more at CNBC: Mortgage rates spike after jobs report