Mortgage Rates Fall on Weak Jobs Data

After trending higher last week, mortgage rates dropped slightly this week in response to an unexpectedly weak July jobs report. Wage growth remains stagnant, although an otherwise strong report may have been marred by the loss of some 32,000 retail jobs from the closure of Toys R Us stores.

Bond investors continue to monitor U.S. trade strife with China, as the countries traded tariff threats and China’s state-run media accused President Trump of turning international trade into a “zero-sum game.”

Although higher than they were a month ago, mortgage rates are slightly below where they stood a week ago, on the heels of a Federal Open Market Committee decision to leave the target range of the federal funds rate unchanged.

The coming week should be quiet in the bond markets, with the exception of Friday, when new inflation data comes out. A strong inflation report could push rates up.