"The Fed's decision to lower the federal funds rate last week was widely expected by the time the announcement came, with several members of the Federal Open Market Committee publicly voicing their support for a cut. Mortgage rates fell ahead of the meeting in anticipation of the Fed's move, but now rates are reflecting conflicting ideas about what central bankers might do in December."
"Now, new data from payroll solutions provider ADP released on Nov. 5 showed that employment somewhat rebounded last month, with private employers adding 42,000 jobs. "Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year," said Nela Richardson, chief economist at ADP, in a press release following the report."
Mortgage APRs reversed course after three weeks of declines, rising as the average 30-year fixed-rate mortgage increased 17 basis points to a 6.18% APR for the week ending Nov. 6, per Zillow rates provided to NerdWallet. The Federal Reserve cut the federal funds rate recently, a move that had been anticipated and supported by several FOMC members. Mortgage rates declined ahead of the Fed meeting but now reflect uncertainty about December policy. Stronger October employment data, including ADP's report of 42,000 private-sector jobs added, could reduce the Fed's urgency to cut and refocus attention on inflation.
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