Mortgage rates have now had several good weeks after the June 16 Fed announcement dealt a blow. Said “hit” is relative, say the least. Rates have technically never left the lower 3% range and are now staying there, albeit closer to 3.0 – especially for purchases. Indeed, “low 3” well applied to most from 2021.
The coming days are unlikely to change that, even if the volatility risk is higher. The most obvious hurdle What needs to be clarified is tomorrow morning’s labor market report – traditionally the most important economic data of every month in terms of interest rates. We know that the Fed will wait several months with data before making important decisions about its interest-rate friendly policy, but that will not stop Traders discourage preemptive action if they believe the data makes the Fed’s likely course of action safer.
All that to say: tomorrow has more potential than the average Friday to trigger an above-average movement in the bond market (and thus in mortgage rates). For the record, this movement can be in either direction depending on the data. And even then, there is never any guarantee that it will happen!
The report will be released at 8:30 am Eastern Time.Well before the typical mortgage lender publishes their first rate quote of the day.