Mortgage rates remain volatile following the FDIC seizure of Silicon Valley Bank in March 2023. The speaker breaks down how recent employment and wage reports are pushing rates in different directions, leaving the market uncertain about where they'll settle next.
Mortgage rates opened the day better on the heels of the news from Silicon Valley bank getting seized by the fdic. Ultimately what happened is they weren't liquid enough to meet consumer demand. So as consumers were going in to withdraw money from the checking and savings, Silicon Valley bank had had some bad investments. They weren't liquid enough to actually meet those consumer demands. Bad news for the economy. But when bad news happens to the economy, it's good for mortgage rates. So rates opened better. Then the employment reports came out. Employments were stronger than expected. That's not good for mortgage rates. Mortgage rates pulled back a little bit. But then the unemployment report came out than expected. So bad for the economy, good for mortgage rates again. And the wages report came out also today, jam packed day. The wages report was a little bit softer than expected. So wages were lower than planned. That's bad for economy, good for mortgage rates. The gist of all this, mortgage rates whipsawed around, went all over the place. Now they're really waiting for some more direction and that leads us to next Tuesday's inflation report.
