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.
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