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The average rate on the 30-year-fixed mortgage saw a 27 basis point increase on Friday morning following the release of the government’s monthly employment report. The rate now stands at 6.53%, up 42 basis points from Sept. 17. Mortgage rates are not directly influenced by the Fed, but they do loosely follow the yield on the 10-year U.S. Treasury.
The anticipation leading up to the monthly report was significant, as the last two reports indicated weaker labor market conditions. This report slightly shifts the outlook for rates going forward, as most had expected a downward trajectory. Today’s homebuyers are particularly sensitive to rate changes as house prices continue to rise and inventory remains low in the market.
Rates are currently a full percentage point lower than a year ago, but the housing market has not seen a significant boost yet. The Mortgage Bankers Association’s chief economist forecasts that mortgage rates will likely stay close to 6% over the next 12 months.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
