Strong jobs report sends bond rates higher again
The first Friday of every month is the day the jobs report is released by the government. A stronger than expected report has lifted rates on 10 year Treasury bonds to almost 5.2%, a gain of 20 basis points since I last reported on rates this past Monday. Mortgage rates will likely increase somewhat as a result. While the figures are subject to future revisions (as almost all government reports are), today's current news means traders don't expect the Federal Reserve to lower rates any time soon. I think we're in for a trading range between 5 and 5.25% for the forseeable future meaning mortgage rates should hover somewhere around 6.5% for a 30 year fixed rate loan. Still a good rate by historical measures.
Take a look at the decline and then the rapid return to almost 5.2% at the far right of the chart. Chart is courtesy of Big Charts.