02/05/2026
Mortgage rates are closely tied to the bond market. When bonds improve, rates tend to move lower.
Today’s employment data came in weaker than expected, signaling a cooling labor market. That helped bonds rally slightly, which in turn allowed mortgage rates to edge down or stabilize. Softer job data also gives the Fed more flexibility to cut rates later, which markets tend to like.
Small move today, but a step in the right direction.