Mortgage rates remain stable following the new jobs report last week showing the economy created 220,000 new jobs in June. This was considerably higher than expected. Tempering the report is wage growth which remains sluggish. This is surprising given the unemployment rate is at 4.4% and employers are trying to complete for employees to fill open jobs.
Federal Reserve chairman, Janet Yellen, testified that the economy has improved that it no longer needs the extraordinary support the Fed has provided since the recession dating back to 2008. The Fed is expected to increase short term interest rates at least 1 more time this year.
The upshot is we should expect mortgage rates to remain steady for the time being but could trend slightly upward depending on the economy and inflation. The 30 YR is currently 4.00% to 4.25% (APR: 4.1% – 4.3%).