Strong employment figures usually push rates up. But this time, according to Zillow, the mortgage rates are not budging. Some experts believe this is because the news isn’t surprising: The labor market has been strong for most of the year, so a strong reaction is not really warranted. Additionally, international relations with entities such as China are still tense, leaving a big question mark over the market’s future.
Mortgage rates responded more modestly than expected to November’s stellar jobs report. Employment figures as strong as Friday’s release would normally push rates upward more strongly, but the labor market has been a bastion of strength for the economy for most of this year. So while Friday’s release exceeded consensus expectations, in many ways it merely reinforced the notion that the labor market remains on solid footing, leaving little reason for bond yields, and thus mortgage rates, to react strongly.
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