The housing market continues to show signs of improvement, with mortgage rates taking another positive turn today. Despite a stronger-than-expected jobs report, the bond market rallied, pushing mortgage-backed securities (MBS) higher and leading to lower rates.

Here’s a breakdown of today’s market movement:

• Morning: MBS prices surged, gaining 6 basis points early on.
• Mid-Morning: The rally continued, with MBS prices climbing 19 basis points.
• Late Morning: MBS prices reached a peak, up 25 basis points, with the 30-year fixed-rate mortgage at 5.5% and a price of 100.19.

Why did rates drop despite a strong job report?

While a strong job market typically leads to higher rates, the market’s reaction today suggests that investors may have been anticipating even stronger numbers. The consensus forecast was for 200,000 jobs, but the actual figure came in at 227,000. Additionally, wage growth, while still elevated, was in line with expectations.

Current Mortgage Rates

For a 30-year fixed-rate mortgage, the par rate is currently:

• 6.375% APR 6.614%
• $400,000 purchase with 20% down
• $320,000 loan
• P&I payment of $1,996

If you’re looking for a lower rate, you can buy down the rate with discount points. For example, a rate of 4.750% APR 5.582% requires a discount point investment of $21,923. This would result in a P&I payment of $1,669.

Stay Tuned for Further Updates

As the housing market continues to evolve, we’ll keep you updated on the latest mortgage rate trends. Be sure to check back for our next update.