Mortgage Rates Likely to Hold Steady After April Jobs Report Shows Stronger Hiring, Softer Wages

Takeaway: A mixed bag April jobs report will keep mortgage rates mostly steady as stronger-than-expected hiring lowers recession risk. But softer wage growth, a small underlying rise in unemployment, and the energy shock from the Iran war leave the Fed on hold for the foreseeable future. April’s jobs report was stronger than expected, suggesting the labor market has firmed up somewhat since the fall. However, the underlying picture is still more stable than strong. Employers added 115,000 jobs in April, well above the roughly 62,000 expected by forecasters.