Mortgage rates rose sharply after a stronger-than-expected U.S. jobs report and upward revisions to the prior two reports undercut the case for near-term Fed rate cuts.
Those labor-market gains pushed bond yields higher because investors saw less need for easier monetary policy; mortgage rates track bond moves more closely than the Fed's current policy rate.
The jump broke from the past three months, when rate swings were driven mainly by the Iran war through its effect on fuel prices and inflation expectations.
Even after Friday's selloff, average lender rates remained below the highs reached on May 19, leaving room for relief if a confirmed peace deal eases inflation fears.