12/5/2023 0 Comments Dow numbers now![]() As a result, just as mortgage rates were drifting down towards 6%, they could turn around. The strong job data will raise the prospect of consumer price inflation and the need for a more aggressive monetary policy to rein in inflation, Yun explained. "That is why the South and the Rocky Mountain regions are seeing more robust home sales gains over the long haul due to faster job growth compared to the rest of the country."īut in the short term, he said, mortgage rates matter more, and there could be a temporary rise. "Home sales and jobs are related over the long term," he said. Job gains are always good for the housing market, said Lawrence Yun, chief economist at the National Association of Realtors. ![]() When Treasury yields go up, so do mortgage rates when they drop, mortgage rates follow them down as well. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed's actions, what the Fed actually does and investors' reactions. While the Fed does not set the interest rates borrowers pay on mortgages directly, its actions influence them. Until inflation is under control, mortgage rates will remain volatile. With a stronger jobs picture comes more people spending more money, and that's going to make the Fed more likely to raise rates in an effort to curb that inflation. ![]() US Treasuries jumped higher after the monthly employment snapshot was released - and where Treasuries go, mortgage rates tend to follow. Mortgage rates will likely rise following the January jobs report shocker, housing experts said Friday. Homes sit on lots in a neighborhood on January 26 in Pembroke Pines, Florida. ![]()
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