Mortgage Rates Move Slightly Higher Following Stronger Econ Data

Mortgage Rates Move Slightly Higher Following Stronger Econ Data

The most basic way to think about interest rate movement is to assume that a strong economy pushes rates higher and vice versa.  There are many other considerations that end up taking precedence at times, but today was a good, old-fashioned, boring, logical day in that regard. There were three separate employment-related reports out in a short window of time early this morning.  All of them were stronger than expected.  Strong jobs data does a few things.  It suggests a strong economy (which is more capable of supporting higher rates).  It suggests upward pressure on wages (which, in turn, drives inflation higher, and high inflation = high rates).  But most importantly, it fuels the expectation among investors that the Fed will draw similar conclusions about the economy and inflation.