This week, the market’s focus was on the job market, inflation concerns, and global headlines.
The May Jobs Report came in stronger than expected. The economy added 172,000 jobs, compared to expectations of about 85,000, while the unemployment rate stayed at 4.3%.
A stronger job market can be positive for the economy, but it can also keep pressure on mortgage rates because it gives the Fed less urgency to make changes. After the report, stocks and mortgage bonds moved lower as markets adjusted to the stronger jobs data.
Markets are also watching oil prices, tariff headlines, and inflation concerns, since all of these can affect expectations for future Fed moves.
One positive part of the week was that productivity improved and labor costs came down, which helped balance some inflation concerns.
What This Means
Mortgage rates may continue to move around as markets react to jobs data, inflation, and oil prices. Stronger economic news can keep pressure on rates, while better inflation news could help bring some relief.
Looking Ahead
Next week, inflation will be back in focus. Markets will be watching consumer and producer prices, along with housing and jobless claims, to see whether the economy is still holding steady or starting to slow.
Mortgage rates fluctuate daily—sometimes even within the same day—based on economic conditions.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
