Mortgage Rate Update August 3, 2011

Mortgage rates are slightly better again today.

Stocks are off again this morning.  If the stock market closes the day in the red it will mark the 8th straight day of sell-off.  In general, when stocks drop rates also follow and that is what is currently taking place.

Stocks may be heading for an 8th staright day of losses

The markets are digesting two separate employment reports from two different private sources.  The monthly ADP jobs report came in better than expected which has provided some hope for Friday’s all-important government jobs report.

However, shortly after the ADP release the firm Challenger, Gray, & Christmas reported that lay-offs jumped by 60% in June restoring the pessimism that has been present over the past week.  The ADP report rarely correlates with the government report so although it was better than expected I don’t think it will carry much weight.

Speaking of Friday, economists are currently expecting 75,000 new jobs for June.  If you’ll recall last month came in well below expectations at 18,000.  For now all the momentum in the market suggests floating BUT anytime we see a rally with this level of vigor we need to be cautious for a pull back.

Current Outlook:  floating

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