After the latest jobs data came in stronger than economists had forecast. As a result, the 10-year and 2-year treasury yields have spiked.
December's non-farm payrolls reading showed much stronger-than-expected job growth. Nonfarm payrolls soared by 256,000 for the month, up from 212,000 in November, the Bureau of Labor Statistics reported. Meanwhile, economists had forecast job growth to rise by 155,000 jobs in December.
The unemployment rate inched lower to 4.1%, one-tenth of a point below expectations.
The spike in the 10-year has impacted mortgage rates as well pushing rates up to 7.24%
This will have significant impact on refinancing, monthly payments and the housing market. We are looking at near one-year mortgage rate highs (April 25th we got up to 7.52%). It looks like housing affordability is not going to see any relief any time soon. But it also looks like real estate as collateral for existing homeowners remains amazingly valuable. Not to mention the value of existing mortgages that are averaging around 4%.
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