Mortgage Rates Move Sharply Higher February 6, 2024

Last Friday was the worst day for mortgage interest rates for over a year in movement from one day to the next.  The cause?  The all important jobs report that gets released at the first part of every month, usually the first Friday of the month.  The report basically said employers are still hiring like crazy, which means the economy is still chugging along, which means inflation is not going to go down like the Fed wants it to.

Then yesterday we saw another report that is not quite as famous but can also move mortgage rates.  It’s called the ISM Non-Manufacturing PMI report.  It basically measures non-product businesses, like service businesses.  And that report was also showing a healthy economy not slowing down.  Ugh for mortgage rates.

These reports and other indicators is what the Federal Reserve looks at when making decisions of raising or lowering their benchmark Fed Funds rate.  These upbeat economic reports need to show a slow down to get an interest rate relief.  So come on people!  Quit buying stuff!  🙂