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This morning’s inflation report came in just a bit softer than expected. Monthly core inflation was slightly lower than forecasts, and annual core inflation edged down as well. At the same time, overall inflation was unchanged from the prior month. When all the details are considered, the report did not clearly point in one direction or another for bond markets.

Instead, today’s data mainly confirms that inflation is roughly where it was before recent disruptions affected data collection. There was no strong signal that inflation is rapidly heating up or cooling down.

Bond prices did improve after the report, which is a positive sign for mortgage rates. When bond prices rise, yields fall, and that helps support lower mortgage rates. However, the improvement has been uneven and relatively small, showing that investors are cautious.

For homebuyers, the takeaway is that today’s inflation report helped reinforce stability rather than drive a big change. Mortgage rates may see modest improvement, but larger moves are more likely to come from future economic reports that provide a clearer picture of where inflation and economic growth are headed.

Over the weekend, attention focused on news involving Federal Reserve Chair Jerome Powell and questions related to statements made to Congress. While the headline sounded significant, the bond market’s reaction has been muted so far.

Bond yields were slightly higher early this morning, and some observers tried to link that move directly to the news. In reality, there was no sharp reaction when the story broke. Trading volume shows that investors noticed the headline, but it did not trigger immediate buying or selling.

Any weakness that did develop happened gradually overnight, and about half of that move was already reversed by early trading. As a result, bonds remain in the same familiar trading range they have been stuck in for weeks, though closer to the weaker end of that range.

For homebuyers, this means mortgage rates are not reacting meaningfully to the political headlines. When bond prices stay within a narrow range, mortgage rates usually do the same. Bigger moves in rates are more likely to come from major economic reports rather than short-term news stories like this one.

This morning’s jobs report delivered mixed signals and did not give the bond market a strong reason to move in either direction. Job growth came in slightly below expectations, while the unemployment rate dipped a bit lower. That drop in unemployment was partly offset by fewer people participating in the workforce, which makes the overall picture more balanced than dramatic.

Because the report did not clearly point to a stronger or weaker economy, it was unlikely to trigger a sharp move in bond prices. As expected, Treasury bonds showed very little reaction.

Mortgage-backed securities, however, told a very different story. They moved sharply higher, not because of the jobs data, but due to a separate announcement made last night. The administration outlined plans to purchase a large amount of mortgage-backed securities. When demand for these bonds increases, their prices rise.

Rising prices in mortgage-backed securities push yields lower, which creates a more favorable environment for mortgage rates. Even though Treasury bonds were mostly unchanged, mortgage bonds climbed significantly, helping support mortgage rates despite the otherwise uneventful jobs report.

For homebuyers, the takeaway is important. Sometimes mortgage rates move for reasons completely separate from the day’s economic data, and today is a strong example of how direct support for mortgage bonds can outweigh broader market trends.

US bond markets came under pressure this morning, and much of that weakness started overseas. Bond yields in Europe moved higher overnight, and US bonds followed a similar path as trading began. When global bond markets move together like this, it often reflects broader investor sentiment rather than any single US report.

This morning’s Jobless Claims report added only a small amount of additional pressure. While the data drew some attention and increased trading activity, it did not significantly change the direction of the market.

For homebuyers, weaker bond prices generally mean higher yields. When yields rise, mortgage rates often move higher as well. Today’s movement is being driven more by global market trends than by US economic data, which means rates can be influenced even when domestic reports are relatively quiet.

In short, bonds are getting little help from overseas markets or from today’s jobless claims data, leaving mortgage rates slightly biased higher for now.

Trading volume in the bond market has picked up again now that the holidays are behind us. Even so, bond yields have remained locked in a narrow range for several weeks.

Since December 10, the 10-year Treasury yield has stayed between roughly 4.10 and 4.20 percent. Every move during that time has fallen within those limits. When markets trade in a range like this, it usually means investors are waiting for clearer economic signals before making bigger moves.

For homebuyers, this matters because mortgage rates tend to move more noticeably only when bond yields break out of these holding patterns. Even with higher trading activity, rates often remain steady until something pushes bond prices strongly in one direction.

The best chances for that kind of movement are still ahead. Important economic reports scheduled for Wednesday and Friday are the most likely events to shift investor behavior. Strong economic news typically pushes bond prices down and causes yields and mortgage rates to rise. Weaker economic news often leads investors to buy bonds, pushing prices up and allowing yields and mortgage rates to move lower.

Until one of those reports breaks the current range, mortgage rates are likely to remain relatively stable.

The bond market is clearly waking up from the holiday slowdown. By midmorning today, trading activity had already surpassed the volume seen on several recent full trading days, showing that investors are back and paying attention again.

Over the past three weeks, bonds stayed locked in a narrow range. The 10-year Treasury yield moved back and forth between about 4.10 and 4.20 percent without making a meaningful move in either direction. That kind of sideways trading often happens when markets are quiet and waiting for fresh information.

Now that normal participation has returned, the chances of a breakout from that range are increasing. The most important event this week is Friday’s jobs report, which often has a strong influence on bond prices and mortgage rates. Strong job growth can push bond prices down and cause yields and mortgage rates to rise. Weaker job data can lift bond prices and help yields and mortgage rates move lower.

There are also other reports to watch before Friday. Wednesday brings the JOLTS and ISM Services reports, which provide insight into job openings and the health of the service sector. These reports can influence how investors feel about the economy, even if their impact is usually smaller than the main jobs report.

So far today, the ISM Manufacturing report came in slightly weaker than expected, but it has not caused much movement in the bond market.

For homebuyers, the key takeaway is that markets are back to reacting more normally. With higher trading activity and several important reports ahead, mortgage rates may be more likely to move out of their recent holding pattern this week.