Mortgage rates jumped by more than 0.25 percent on Friday after a government report showed that the labor market continued to remain strong.
The average 30-year fixed-rate mortgage rate jumped 27 points from 6.26 percent to 6.53 percent on Friday, according to data from the Mortgage News Daily (MND) mortgage rate index that is updated on a daily basis. This is one of the biggest single-day rate increases MND has ever tracked.
A strong employment situation indicates a more robust customer demand for mortgages, thus potentially keeping rates higher and lowering any chances of a rate decline.
The U.S. Bureau of Labor Statistics (BLS) released its employment situation summary report for September on Oct. 4. The report showed that 254,000 new jobs were added last month, far exceeding the 140,000 jobs estimated by experts. This was also up from the 159,000 jobs added in August. In addition, the unemployment rate fell for the second consecutive month, from 4.2 percent to 4.1 percent. With the jobs report showing persistent strength in the labor market, mortgage rates surged….