JOBLESS CLAIMS, 10-YR TREASURIES, THE FED, AND MORTGAGE RATES

Rates are UP SLIGHTLY?to end the week.? Check em' out and then read our 30 second commentary below. Rates are averages / examples for network use only: Pricing as of 8/9/2024 at 12:32 pm.

JOBLESS CLAIMS, 10-YR TREASURIES, THE FED, AND MORTGAGE RATES

Mortgage Rates Slightly Increase Week Over Week

Mortgage rates have seen a slight uptick compared to last week as markets react to ongoing inflation concerns and mixed data on unemployment and job growth. Despite this increase, overall rates remain lower than they were several months ago, offering some relief to U.S. consumers interested in purchasing or refinancing homes.

U.S. Treasury Yields Decline Amid Economic Assessment On Friday, U.S. Treasury yields dipped as investors continued to evaluate the state of the U.S. economy in light of recent labor data. The yield on the 10-year Treasury dropped by approximately 6 basis points, settling at 3.936% as of 10:16 a.m. ET. This level is close to where it stood last week before a weak U.S. jobs report led to a bout of global market volatility.

Jobless Claims Fall, But Labor Market Concerns Persist The latest report from the Labor Department revealed that first-time filings for jobless benefits totaled a seasonally adjusted 233,000 for the week, a decrease of 17,000 from the previous week’s revised figure. This was lower than the Dow Jones estimate of 240,000. However, Wall Street remains on edge, with concerns growing over the slowing pace of job growth, which some analysts fear could signal a looming recession.

Unemployment Rate Rises Amid Nonfarm Payrolls Report Last Friday's nonfarm payrolls report showed a modest increase of just 114,000 jobs in July, coupled with a rise in the unemployment rate to 4.3%. This triggered the Sahm Rule, a recession indicator that measures changes in the unemployment rate, further heightening concerns about the labor market’s health. Market volatility has continued since the release of this report.

Fed Rate Cut Speculation Continues In response to these developments, traders have adjusted their expectations for the Federal Reserve’s next move, with current bets evenly split between a 50 basis-point rate cut and a 25 basis-point reduction in September, according to the CME’s FedWatch Tool.

Looking Ahead: Economic Data on the Horizon Investors will be watching closely for fresh economic data, with the next significant report being the producer price index for July, due for release on Tuesday.

Stay Informed

We'll continue to monitor mortgage rate trends and keep you updated in future newsletters.

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