Mortgage Rates Barely Changed Ahead of Important Jobs Report

Mortgage rates are based primarily on bonds.  Bonds take cues from economic data (among other things).  And tomorrow’s big jobs report is the most consistently important piece of economic data each month as far as the bond market is concerned.  This logically means that there is an increased risk of volatility tomorrow.
Compounding the issue is the fact that the Fed is also paying careful attention to labor market data as they wait for evidence of enough progress to begin tapering their monthly bond purchases.  The Fed’s bond buying program is a key reason that rates are as low as they are.  Although the market is widely expecting a tapering announcement by the end of the year, the timing of the announcement would have a noticeable incremental effect on rates….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed