Mortgage ratesÃ‚Â erased yesterday’s lossesÃ‚Â after today’s jobs report, though not necessarily because of it. Ã‚Â The Employment Situation (affectionately referred to as “the jobs”) is traditionally one of the biggest sources of market movement. Ã‚Â So when rates make a big move following the jobs report, it’s only natural to assume a cause and effect relationship. Ã‚Â That said, most of the credit for today’s move goes other places.
First of all, there’s the simple fact that rates have been trending so decisively higher in general. Ã‚Â Just yesterday, I noted that we were increasingly likely to see a rebound as rates continued to push the boundaries of past precedent. Ã‚Â In other words, rates have risen about as quickly as they ever have, and it’s common for any financial instrument to blow off some steam in such cases. Ã‚Â So that’s part of today’s story.