The buzz around the latest jobs report, known for its potential to cause significant market reactions, was surprisingly muted this Friday. While some movement was observed earlier in the week resulting in a drop in rates, today’s jobs report only caused a slight shift in the opposite direction. The average lender’s top-tier 30-year fixed rate fell by 0.06%, overshadowing the 0.03% increase prompted by the report.
Despite the minimal fluctuations, the average 30-year fixed rate continues to hover just above 7%. This signals that rates are currently more influenced by economic data rather than sensational headlines. Looking ahead, the upcoming Consumer Price Index (CPI) report stands as the next economic release with the potential to shake up the market as much as the big jobs report.
CPI, one of the government’s key inflation indices, holds strategic importance in the current economic climate. Inflation levels are under close scrutiny as the Federal Reserve indicates a focus on achieving progress in this area before considering further rate adjustments.
While the relationship between mortgage rates and the Fed Funds Rate may vary over shorter timeframes, a lower-than-expected inflation reading next Wednesday could prompt a downward shift in mortgage rates. As the economic landscape continues to evolve, keeping an eye on key economic indicators like CPI will be essential for those monitoring interest rate trends.
