Typically, the 10-year Treasury tracks closely with the Fed Funds Rate, but that wasn’t the case last year.
Despite rate cuts in September, November, and December, mortgage rates actually went up.

Why? The bond market took a hit from misleadingly strong job creation numbers reported by the Bureau of Labor Statistics, which were later revealed to be way off. On top of that, inflation readings in January and February came in hot, adding more pressure.

This time, things look different.

Job growth is slowing, and inflation is showing signs of stabilizing. The most recent ADP Employment Report showed a loss of 33,000 jobs, far below the expected 95,000. That’s a significant miss, and it supports the Fed’s case for easing.

Bottom line: This could be the window where a Fed rate cut actually leads to lower mortgage rates.

http://www.YourApplicationOnline.com