Bond Market Update

Bond Market Update

 Mortgage pricing is worse than it was yesterday

Source: Thomson Reuters

Market Update

Friday, February 3, 2023

What's going on and why does it matter?
Mortgage bond prices are plunging this morning in response to the red-hot January jobs report. A whopping 517,000 jobs were created last month compared to market expectations of just 185,000. The unemployment rate went down to 3.4%. The surprising numbers are sure to trigger a volatile reaction in the stock and bond markets today.

What should you do about it?
Lock your rate to be safe.

Economic Calendar

Economic reports that may impact mortgage rates this week:
Date Report Period Prior Est. Actual
Tue 31 Jan Chicago PMI Jan 44.9 45.1 44.3
Tue 31 Jan Consumer Confidence Jan 108.3 109.0 107.1
Wed 1 Feb ADP National Employment Jan 235k 178k 106k
Wed 1 Feb Construction Spending Dec 0.2% 0.0% -0.4%
Wed 1 Feb ISM Mfg. PMI Jan 48.4 48.0 47.4
Wed 1 Feb JOLTS Job Openings Dec 10.458M 10.230M 11.012M
Wed. 1 Feb Fed Funds Target Rate - 4.25-4.5% 4.5-4.75% 4.5-4.75%
Thu 2 Feb Initial Jobless Claims Week ending Jan 28 186k 200k 183k
Thu 2 Feb Factory Orders Dec -1.8% 2.3% 1.8%
Fri 3 Feb Non-Farm Payrolls Jan 223k 185k 517k
Fri 3 Feb Unemployment Rate Jan 3.5% 3.6% 3.4%
Fri 3 Feb Average Earnings Jan 0.3% 0.3% 0.3%
Fri 3 Feb ISM Non-Mfg. PMI Jan 49.6 50.3 55.2