After hitting 6-month lows early last week, mortgage rates bounced and have been moving higher ever since. The increases were moderate at first, but the pace quickened after last Friday’s jobs report. In general, strong economic data is bad for rates. The jobs report is generally considered to be the most important piece of economic data for rates. That’s especially true right now as the Fed tries to decide when it will slow the pace of its bond buying program.
The Fed isn’t the only consideration for rates though. In fact, while the timing is a bit of a moving target, it’s really the underlying economy that stirs the Fed to action. And as far as the economy is concerned, the state of the pandemic is probably the most important input, but there are others that rival it from time to time.…(read more) Fidelity Home Group | Mortgage News | Mortgage Rates