Labor report sends mortgage rates higher

Economic news wows bond market

Some very strange news this morning has the mortgage market at risk for a sharp reversal. The 10-year T-note bottomed at 4.54 percent and this morning is 4.7 percent and unstable, forcing mortgages to depart 6.25 percent, headed north.

The cause of this abrupt turn in expectation: in plain, nontechnical English, things don’t look as bad as the bond market had hoped.

On the first Friday of every month at 8:30 a.m. Eastern Time, the Labor Department releases the single most-watched datum of each month, the change in nonfarm payrolls in the immediately prior month.