Mortgage rates have had several good weeks now after being hit by the Fed’s June 16 announcement. The said “blow” is relative, To say the least. Technically, rates have never left the lower 3% range, and they are now staying there, albeit closer to 3.0, especially for buying. In fact, “the 3 downs” probably applied to most from 2021.
Nothing in the next few days should change this, although the risk of volatility will be higher. the most obvious obstacle clear will be tomorrow morning’s jobs report – traditionally the most important economic data for any given month when it comes to interest rates. While we know the Fed is still waiting several months of data before making big decisions on its pro-rate policies, this won’t stop traders to act preemptively if they think the data makes the Fed’s likely course of action safer.
All that to say: tomorrow has more potential than the average Friday to trigger a larger than normal movement in the bond market (and therefore, mortgage rates). For the record, this movement could occur in both directions, depending on the data. And even then, there is never a guarantee that it will happen!
The report will be released at 8:30 a.m. Eastern Time.good before the typical mortgage lender publishes their daily first rate offer.