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Mortgage rates moved lower this week, as weak economic data sent both mortgage rates and bond yields lower. The three biggest pieces of data this week were JOLTS Job Openings, Initial Jobless Claims, and Nonfarm payrolls, with Nonfarm payrolls coming in close to expectations and the other two pieces of data coming in weak. The jobless claims had a seasonal adjustment update that now is showing that jobless claims are picking up, showing that the labor market is not as tight as the data was indicating. Looking to next week, CPI is the largest piece of data. With inflation as hot as it is, the Fed will feel pressure to either continue to raise rates or keep rates high until inflation comes down further. The Fed is still data dependent, so we will need to see the economic data weaken further for mortgage rates to move lower.

• US 10-year Treasury closed at 3.35% on Friday morning

• Nonfarm Payrolls came in-line with analyst's expectations (236k jobs vs expectations of 230k jobs)

• ADP Employment Change cane in lower than analyst's expectations (145k vs expectations of 210k)

• ISM Manufacturing Index came in lower than analyst's expectations (46.3 vs expectations of 47.5)

• JOLTS Job Openings came in lower than analyst's expectations (9.931mm job openings vs expectations of 10.50mm job openings)

• ISM Services Index came in lower than analyst's expectations (51.52 vs expectations of 53.8)

• Initial Jobless Claims came in above analyst's expectations (228k claims vs expectations of 200k claims)

• Mortgage Applications fell 4.1% this week