Rates keep climbing

Yields moved up in reaction to positive jobs data. Mortgage rates rocketed up in retaliation, the 30-year and 15-year mortgages both up an astounding 20+ basis points. The 30-year remains just under 3% while the 15-year mortgage is at 2.44%. 

current outlook:

In addition to pushing Treasury yields and stock benchmarks higher, Friday’s job data may also have far weightier repercussions. This is because as employment outlooks improve, the Federal Reserve may push up their timeline for reducing asset purchases and increasing rates. In the short-run, a high supply of Treasury yields may also drive Treasury yields (and thus mortgage rates) further up as this week brings more Treasury auctions and an influx of corporate bonds. On the real estate side, the approach of fall usually means decreased housing inventory and less competition. However, sales remain as robust as ever and only 24.7% of the houses on the market reduced their prices, way below the typical one third of homes that end up cutting prices.

rates keep climbing

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top