JOBS REPORT + 10-YEAR UP

Rates are RELATIVELY?FLAT?this?week.? Check em' out and then read our 30 second commentary below. Rates averages / examples for network use only: Pricing as of 4/5/2024 at 11:54 am

JOBS REPORT + 10-YEAR TREASURIES UP

We've had an eventful week in the financial world, with Treasury yields making some significant moves on today’s data. ?Yields climbed following the release of the highly anticipated nonfarm payrolls data for March, which turned out to be better than expected.

The 10-year Treasury yield surged by 7 basis points, landing at 4.378%. Earlier in the week on Wednesday the benchmark note hit a new high for 2024 at 4.429%. Now, why does this matter? Well, mortgage rates often follow the trajectory of the 10-year Treasury, so these yield movements can impact borrowing costs for homebuyers.

Breaking down the job market news, the Labor Department’s Bureau of Labor Statistics shared that nonfarm payrolls saw a robust increase of 303,000 in March. This figure surpassed expectations, which were set at a more modest 200,000. February's gain of 270,000 jobs was also revised upwards. The unemployment rate remained steady at 3.8%, aligning with predictions from Wall Street. All eyes are now on how these job numbers might influence the Federal Reserve's decisions regarding interest rates.

A strong labor market allows the central bank to focus on curbing inflation without rushing into rate cuts. Speaking of which, at their recent meeting, the Fed again hinted at three potential rate cuts by year-end. However, opinions within the Fed seem to be shifting slightly. Minneapolis Fed President Neel Kashkari questioned the need for rate cuts if inflation stays above the 2% target.

For those keeping an eye on mortgage rates, they've remained fairly stable compared to last week.

Stay tuned for more updates on how these economic shifts might impact your financial decisions!

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