Mortgage rates are largely unchanged this morning following last Thursday’s better than expected all-important jobs report.
In case you missed it the June jobs report showed that 288,000 new jobs were created. This was far better than expectations. Typically, a stronger than expected jobs report causes rates to rise. However, rates had risen modestly ahead of the report so this was a classic case of “buy the rumor, sell the news”.
This weeks economic calendar is fairly quiet. The most anticipated news of the week is the minutes from the last Federal Open Market Committee meeting which will be released on Wednesday.
If mortgage rates were determined solely on domestic economic conditions I believe rates would be .375%-.50% higher right now. However, because yields on government debt are so much lower in Germany and Japan and because geopolitical uncertainty reigns in Ukraine and Iraq mortgage rates here in the US are still attractive.
Current Outlook: locking bias