JOBS REPORT, WAGES, 10-YEAR SPIKE + FED DIRECTION
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Rates are HIGHER as we 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 10/4/2024 at 11:16 AM.
JOBS REPORT, WAGES, 10-YEAR SPIKE + FED DIRECTION
The U.S. economy demonstrated strength in September, adding an impressive 254,000 jobs to nonfarm payrolls. This figure far exceeded expectations and marked a significant jump from the previous month’s revised total.?
The unemployment rate fell to 4.1%, further indicating a healthy and stable job market. Not only are more Americans finding work, but wages are on the rise. Average hourly earnings increased by 0.4% in September and have grown 4% compared to the same time last year. This wage growth boosts consumer spending and fuels broader economic activity.
Impact on Treasury Yields and Mortgage Rates
The strong job growth and rising wages had ripple effects throughout the financial markets. Treasury yields climbed as investors reacted to the positive labor data. The 10-year Treasury yield jumped by more than 11 basis points to just under 4%, while the 2-year Treasury yield rose by over 17 basis points. As a result, mortgage rates also edged higher.
What This Means for Interest Rates + The Fed
The robust labor market report has eased concerns about economic weakness, suggesting that the Federal Reserve may have room to ease interest rates more gradually. The futures market is now pricing in a high probability of consecutive quarter-percentage-point interest rate cuts in November and December.
Stay tuned as we continue to monitor how these developments shape the economic landscape in the months ahead!
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