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Fed will move, but economists debate when and how
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Processing ContentHowever, its latest Blue Chip Economic Indicators poll was conducted on Aug. 4 and 5, prior to Friday's release of worse-than-projected jobs data from the Bureau of Labor Statistics.
How Friday's jobs report could affect mortgage ratesHowever, the poor labor data has shifted market sentiment.
While what the FOMC does has no direct effect on mortgage rate movements, investors price those sentiments into the 10-year Treasury yield.
"A lower risk of additional Fed tightening could help keep a lid on longer-term interest rates and mortgage rates, easing some pressure on affordability ," Williamson said.
"A jobs report this weak, layered on top of two months of substantial downward revisions, makes a hike next month almost impossible to justify," Green said.