After a stronger-than-expected jobs report, mortgage rates rise.

• According to Mortgage News Daily, the current average rate for a 30-year fixed mortgage is 6.53%.
• The Federal Reserve cut its benchmark rate by half a percentage point, resulting in a 42 basis point increase.

The 30-year-fixed mortgage rate increased by 27 basis points on Friday after the release of the monthly employment report, bringing it to 6.53%, as reported by Mortgage News Daily.

The yield on the 10-year U.S. Treasury is 42 basis points higher than the day before the Federal Reserve cut its benchmark rate by half a percentage point, but mortgage rates do not follow the Fed closely.

The anticipation for the next move by the Fed regarding mortgage rates was high, as the last two monthly reports indicated weaker labor market conditions.

"Matthew Graham, chief operating officer at Mortgage News Daily, wrote that the Fed's decision to cut by 0.50 vs 0.25 last month was driven by the fear/expectation that reports like today's would be in shorter supply going forward. The only hope for bonds is the possibility that this is just one jobs report in a recent run that has been mostly weaker, and the next one may not be as damaging."

The report has slightly shifted the outlook for rates going forward, as most had assumed the trajectory would be lower.

"The Mortgage Bankers Association's chief economist, Michael Fratantoni, predicts that mortgage rates will remain within a narrow range over the next year, with rates staying close to 6% despite the news that will push them to the top of that range."

Homebuyers today are highly attuned to rate fluctuations as home prices continue to increase from the previous year. Despite the low inventory on the market, prices remain high due to the lack of options. Although rates have decreased by a full percentage point from last year, the housing market has not experienced significant growth yet.