Mortgage Rates Climb to 2-Month High Following Economic Data Release
The current state of mortgage rates has seen a notable rise, reaching a two-month high following the release of significant economic data. Recent reports have impacted the bond market, leading to shifts in interest rates.
Recent Economic Reports Affecting Mortgage Rates
The bond market typically relies on regular economic reports to gauge performance and set interest rates. However, with the government shutdown limiting access to critical data, the market has had to navigate uncertainty. Despite this, two key reports released recently have shown stronger-than-expected results, adversely influencing mortgage rates.
ADP Employment Data Exceeds Expectations
The first report, from ADP, indicated a monthly employment increase of 42,000 jobs, surpassing the median forecast of 25,000. Although the difference is modest, it was sufficient to create initial weakness in bond markets early in the day.
Services Sector Report Shows Strength
Just hours later, another report focusing on the services sector reinforced this trend, as it too revealed stronger-than-anticipated numbers. Consequently, bond rates experienced further declines, prompting lenders to adjust mortgage rates accordingly. As a result, the average rate for a 30-year fixed mortgage climbed to 6.37%.
Current Mortgage Rate Trends
- Current 30-Year Fixed Rate: 6.37%
- September 25 Rate: 6.39%
- Highest Rate Since: September 4
While today’s figures brought rates close to their highest levels in over two months, they remain significantly lower than averages seen in 2025. Nonetheless, the patterns suggest a shift since the Federal Reserve’s recent meeting at the end of October, indicating potential volatility ahead in the mortgage rate landscape.
