News You'll Use

Mortgage rates rose this week, as a strong private employment report caused the increase in rates. The trend with mortgages rates has been that they have been moving higher this summer. Inflation has proven to be sticky, and the labor market is still extremely tight. The Fed is data dependent for the time being and while inflation is slowly coming down, it is at a slower pace than the Fed expected. For us to see rates move lower, we need to see inflation come down at a faster pace, for the labor market to loosen up, and ideally both to occur. Until then, rates will likely continue to stay at these elevated levels.

• US 10-year Treasury closed at 4.03% on Thursday afternoon

• ISM Manufacturing came in lower than analyst's expectations (46.0 vs expectations of 47.1)

• Factory Orders came in lower than analyst's expectations (0.3% m/m vs expectations of 0.8% m/m)

• ADP Employment Change came in higher than analyst's expectations (497k vs. expectations of 225k)

• JOLTS Job Openings came in lower than analyst's expectations (9.824mm vs. expectations of 9.9mm)

• ISM Services PMI came in higher than analyst's expectations (53.9 vs. expectations of 51.2)

• Initial Jobless Claims came in higher than analyst's expectations (248k claims vs expectations of 265k claims)

• Mortgage Applications fell 4.4% this week