Mortgage Rates Move Up From Long-Term Lows
Mortgage rates hit their best levels in 6 months yesterday, but moved higher today following a strong report on the services sector.
The economy is one of the key inputs for interest rates. As such, several of the most relevant economic reports have a longstanding history of causing day-to-day volatility. Today’s ISM Non-Manufacturing Index is one of a handful of the most important reports. By coming out much stronger than expected, it suggested the economy was closer to a level that would prompt the Fed to make changes to rate-friendly policies. Bonds reacted with lower prices and higher yields (aka “rates”).
Of course we’re only talking about only one economic report. A few short hours earlier, another important report, ADP Employment, missed by a longshot. A few days ago, ISM’s own manufacturing index suggested the post-covid economic growth was leveling off.…(read more) Fidelity Home Group | Mortgage News | Mortgage Rates