| Strong job report lifts stocks but pushes mortgage rates and bond yields higher – The Department of Labor and Statistics reported that 139,000 new jobs were added in May, exceeding economists’ expectations of 120,000 new jobs. The unemployment rate remained unchanged at 4.2%. Average hourly wages increased 3.9% year-over-year, up from a 3.8% year-over-year increase in April. On Wednesday, ADP, the world’s largest payroll company, estimated that only 37,000 new jobs were added in May. With the job market appearing to slow, stocks, bond yields, and mortgage rates dropped. For example, on Tuesday the 10-year treasury bond yield was 4.46% and dropped to 4.36% on Wednesday after the ADP report was announced. Unfortunately, everyone realized that ADP was way off again when Friday’s jobs report from The Department of Labor and Statistics showed 139,000 new jobs created in May, not the 37,000 ADP estimated. The 10-year jumped to 4.51% to close the week. Since mortgage rates follow bond yields those rose as well. Stocks also rallied as more people working at higher wages is good for the economy.
Stock markets finished higher again this week – Stock markets were in correction territory in April. Major indexes were down 12% – 17% on April 11 from December 31, but now they have rebounded to where they were at the start of the year. The Dow Jones Industrial Average closed the week at 42,762.87, up 1.2% from 42,270.07 last week. It is down 4% from 44,544.66 on December 31, 2024. The S&P 500 closed the week at 6,000.36, up 1.5% from 5,911.51 last week. The S&P is down 0.7% from 6,040.53 on December 31, 2024. The Nasdaq closed the week at 19,529.95, up 2.2%from 19,113.77 last week. It is down 0.5% from 19,627.44 on December 31, 2024. U.S. Treasury bond yields – Bond yields jumped on Friday after investors learned that 139,000 new jobs were added in May and wages increased. The 10-year treasury bond closed the week yielding 4.51%, up from 4.41% last week. The 30-year treasury bond yield ended the week at 4.97%, up from 4.92% last week. We watch bond yields because mortgage rates follow bond yields. Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of June 5, 2025, were as follows: The 30-year fixed mortgage rate was 6.85%, down from 6.89% last week. The 15-year fixed was 5.99%, down from 6.03% last week. The graph below shows the trajectory of mortgage rates over the past year. The graph below shows the trajectory of mortgage rates over the past year.
Have a Great Weekend! |
News & Media
