Mortgage Rate Update: Strong Jobs Data Pushes Rates Higher

What Did Rates Do This Week?

Mortgage rates moved higher this week, with most major loan programs increasing by about 0.25%. The biggest driver was stronger-than-expected jobs data. August payrolls increased by 162,000, while the unemployment rate held steady at 4.1%.
A stronger labor market can put upward pressure on mortgage rates because it may give the Federal Reserve less reason to lower interest rates. Investors also continue to watch inflation closely, which is keeping pressure on the bond market and mortgage rates.

What to Look Forward to Next Week

Next week, the Federal Reserve will be the main focus as investors watch for clues about its next move on interest rates. The latest inflation data and stronger jobs numbers have increased expectations that the Fed could keep rates higher for longer.

Lock or Float Bias

Current Lock/Float Bias: Slight Lock

With mortgage rates moving higher this week and economic data showing a stronger labor market, borrowers closing within the next 15–30 days may want to consider locking their rate. Those with longer timelines may choose to float, but should be prepared for continued volatility.