Flagstaff Mortgage Rates are up at the end of this week after lowest rates in 26 months on Tuesday.

After a sharp run-up in Bond prices, which helped home loan rates drop to multi-year lows, I felt a correction was due and it finally happened over the past 24 hours.

A large drop in Bond prices came following the Jobs Report, which was a bit better than expectations. Adding fuel to the fire was the closely watched Hourly Earnings number, which was above estimates and is the largest read in over two years. Bottom line: higher wages and a tight job market are both inflationary, hence the large drop in Bond prices this morning.

Until a solid floor of support is hit and the bond market stabilizes, I am going to continue to recommend locking your home loan rate now rather than hoping for lower rates anytime in the near future.