We wrapped up the week with some genuinely good news. If you have been watching the headlines earlier this week, you might have seen some conflicting information regarding jobs and the economy. However, we have to look at the actual data to understand where mortgage rates are going.
The Data: CPI and Bond Auctions Yesterday morning, the Consumer Price Index (CPI)—the key report we watch for inflation—came in “cooler” than expected. Inflation is the arch-enemy of mortgage bonds, so when inflation reports come in low, bonds typically go up, and rates tend to improve.
This follows Thursday’s very strong 30-year bond auction. The demand for these bonds was high, which tells us that big institutional investors are feeling confident.
Looking Past the Noise Earlier in the week, there was some volatility surrounding the Bureau of Labor Statistics (BLS) job figures. The market clearly didn’t “believe” the strength of those numbers, and the strong bond auction Thursday confirmed that skepticism. We are now seeing the market settle back into a comfortable rhythm, focusing on the cooling inflation data rather than the confusing labor reporting.
What This Means for You We are sitting here this weekend with mortgage bonds trading higher and rates benefiting from the shift. It is a reassuring spot to be in.
Today is Valentine’s Day. Whether you view it as a Hallmark holiday, a day for couples, or a time for friends to get together (Galentine’s and Palentines are a real thing!), it is a day centered on connection. I am happy to report that the “heart” of the market is in the right place this weekend.
As always, I am here to be a resource, not to sell you on a rate. If you have questions about how this news impacts your specific scenario, reach out anytime.
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Sal Trapani Mortgage Banker & Owner, MJ Mortgage LLC Magnolia, TX 77354 281-608-2846 | sal@mjmortgagellc.com NMLS 1055510 / NMLS 2381195