This week, we spoke with financial experts about the current state of mortgage rates and the job market. According to the latest report from the U.S. Labor Statistics released on October 4th, non-farm employment rose by 254,000 in September, significantly exceeding the revised increase of 159,000 jobs in August. The unemployment rate slightly decreased to 4.1%, while wage growth reached 4%, also higher than anticipated.
These developments have had a swift impact on mortgage rates, which have surged by approximately 0.25 percentage points across all terms over the past week, with the 30-year fixed mortgage rate now standing at 6.125%.
Experts suggest that current interest rates are nearly at their lowest point in over a year. The unexpectedly strong job report last week has been a primary driver behind the rapid increase in rates. A similar scenario was observed back in April, although that time, it was inflation data that spurred the rise in rates rather than job statistics.
Reflecting on April, the bond market was more focused on inflation than employment data, whereas now the attention has shifted to job figures. However, market analysts caution that if the forthcoming inflation data deviates significantly from predictions, it could still have a moderate impact on market trends.
While rates may fluctuate in the coming weeks, the majority of experts maintain a positive outlook on long-term trends. Lisa Sturtevant, Chief Economist at Bright MLS, predicts that interest rates will likely remain around 6.2% by the end of this year.