05/08/2026
Friday Mortgage Update
MBS pricing and Treasuries are improved this morning. The U.S. 10 Year Treasury yield is sitting at 4.35%, below yesterday's close of 4.38%, and MBS is currently up +0.125 pts.
Here's what's moving the market:
🔹 Jobs Report Beats Expectations
April payrolls came in at 115,000 jobs added, well above the 55,000 forecast. Unemployment held steady at 4.3%. Retail hiring picked up, signaling continued consumer demand. Overall, the labor market remains steady and resilient.
🔹 Geopolitical Tensions Flare, Then Ease
The U.S. and Iran exchanged fire in the Strait of Hormuz amid the ongoing U.S. blockade. The exchange was short lived, and the administration confirmed the ceasefire is still in effect.
🔹 Oil Holds Near $100
Crude is hovering around $95 a barrel, keeping pressure on gas pumps and remaining a short-term inflation concern.
🔹 Consumer Sentiment Slips
The Univ of Michigan preliminary May reading came in at 48.2, down from a final April reading of 49.8. Current conditions dropped to 47.8 from 52.5.
🔹 Looking Ahead
Next week brings the inflation data everyone is watching: CPI on Tuesday and PPI on Wednesday. Both will be key drivers for rate direction.
Bottom line: rates are catching a small break this morning, but next week's inflation prints will set the tone heading into mid-May.
If you're shopping for a home or thinking about a refinance, this is a window worth watching.
Have questions about how today's market affects your buying power? Let's talk.
