WEEKLY MARKET UPDATE October 13th, 2024

This week, interest rates kept climbing after a stronger-than-expected jobs report. Let me quickly break down what happened.

Just a few weeks ago, the Fed cut interest rates by 0.50% to help keep the job market steady. But since then, mortgage rates have actually gone up by about the same amount—mostly because of the surprising September jobs report.

Last week, we learned that some Fed officials wanted a smaller rate cut of just 0.25%. They’re being cautious, trying to bring inflation down without causing a spike in unemployment. Meanwhile, weaker demand for U.S. debt also pushed rates higher, especially after a poor auction for 10-year Treasury notes.

On a positive note, the strong economy keeps hope alive for a “soft landing,” where inflation falls toward the 2% target without triggering a recession. But oil prices, which recently surged, could push rates even higher if they stay elevated.

So, where does that leave us? Mortgage rates have ticked up since the Fed’s cut, and while inflation is still above target, there’s cautious optimism about the economy. I’ll keep an eye on things for you as we move forward!