At the time I am writing this, mortgage interest rates are 1/8th of a percent higher than they were last Friday.

This week was a slow week in terms of relevant economic reports. Markets were still digesting last Fridays better than expected employment report for most of this week. Last Friday we saw a big spike in the 10 year Treasury bond yield(10yr) following the employment report. Traditionally the 10yr and mortgage rates are closely tied, but in this case mortgage rates increased but not nearly as much at the 10yr.

Looking forward we have to monitor the economic reports closely to see if last Fridays employment report was fluke or it was beginning of a new trend. If more strong economic reports continue to come out look for interest rates to start climbing. On the flip side if economic outlook returns to negative, rates will stabilize where they are now.