Mortgage rates dropped nicely after the November Jobs Report saw a gain of +227k jobs, and the unemployment rate rose to 4.2%. Investors see it as a cooling labor market compared to the year’s first half.
What does this mean for the Fed’s rate? Markets still expect the Fed to cut rates by another 25 basis points at the December 17-18 meeting. However, the Fed will need to see more data to decide about cuts in 2025.
The bond market responded to the jobs report positively, pushing 10-year yields to their lowest levels in five weeks. That’s good news for mortgage rates, which are already trending down because mortgage rates closely follow the 10-year yield.
This week’s Consumer Price Index and consumer spending data can also significantly affect economic indicators before the Fed’s December meeting.
In the meantime, mortgage rates are at their lowest levels in weeks.
