Posted To: Mortgage Rate Watch
Mortgage rates fell again today after the jobs report showed slower payroll growth in July and persistently flat wage growth. On average, this is the most important piece of economic data for interest rates over the years as it speaks both to economic strength and implied inflation (because higher wages are thought to beget higher inflation). Growth and inflation are two of the most basic building blocks for interest rates. The higher they are, the higher rates would go, unless there was some special circumstance such as the Fed's bond buying regime during the initial recovery from the Great Recession. The bottom line is that today's jobs data didn't do anything to suggest growth or inflation was any higher than anyone thought heading into today. As such, bonds were able to improve a bit and...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily https://ift.tt/2LSEGx2
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