Mortgage News Daily
Third-party benchmarks — not my rates or a quote of my pricing.
What happened
Payroll growth accelerated from an upwardly revised 21,000 in July. Participation rose to 61.6%, average hourly earnings increased 0.3% for the month and prior payrolls were revised higher by a combined 55,000 for June and July.
What sits underneath it
The report reduced concern about an immediate labor-market slowdown and returned attention to inflation. Treasury yields moved higher after the release, but Mortgage News Daily's benchmarks show that the mortgage-rate response was modest.
Why mortgages care
Mortgage pricing is downstream from the bond market. Strong labor data can make the Fed less inclined to provide relief and can keep yields elevated. It does not create a one-way path, but it removes one argument for lower rates.
What could change next
August producer inflation arrives September 10, followed by consumer inflation September 11. Both can reshape inflation expectations and bond yields. Oil, global yields and Treasury supply also matter, so one jobs report does not settle the rate outlook.
Originally published in Lynas Weekly, Issue No. 2. Archived web edition.
Educational information. Not a loan approval, rate quote, commitment to lend, or individualized financial advice. Time-sensitive statements retain their original publication context.