Mortgage rates hit a yearly low, dropping to 6.29% for a 30-year fixed rate mortgage following a disappointing Friday jobs report. Rates haven’t been this low since September 2022, prompting lenders to quote high 5’s. Investors bought bonds, causing bond prices to rise and rates to drop.

The latest jobs report showed a weak market cooling further, with nonfarm payrolls rising by only 22,000 in August — well below expectations. Unemployment hit 4.3%, wages rose 0.3% monthly (3.7% annually), the slowest increase since July 2024.

After the jobs report, the S&P 500 and Nasdaq hit record highs as investors anticipated a September rate cut. Treasury yields fell, the dollar weakened, and major markets closed down Friday. The Dow Jones Industrial Average, S&P 500, and Nasdaq all saw declines.

Read more at Yahoo Finance: Mortgage rates fall to lowest daily level since October 2024