Wage inflation is bad for rates
Hey Basis Pointers, sorry our normal morning newsletter fired off before today's biggest market news so I'm doing a quick follow up here.
First move for mortgage rates is up after today's +253k new April jobs was way above +180k expectations, and unemployment at 50-year low of 3.4%.
More important is wage growth for April up 0.5% vs. 0.3% expected.
Wage growth is great for workers but bad for inflation and mortgage rates.
Here's a
rundown of today's jobs report, rate reaction, and home affordability with today's rates of around 6.5%.
Julian
Mortgage rates rise to 6.5% range on hot jobs report. Wages too high for Fed comfort, +253 new jobs, 3.4% unemployment holds at 50-year low.
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