Rate Update December 5, 2008
Interest rates remain similar to yesterdays as bonds are trading sideways on the morning
If you are reading this rate update on your work email; consider yourself lucky. The monthly Jobs Report was issued today for the month of November by the Labor Department and the news was grim. 533,000 jobs were lost in November which represents the biggest job loss in 35 years. In the last 58 years, this is only the fourth time that there have been over 500,000 job losses in a month.
To make matters worse, downward revisions of the September and October jobs report figures revealed an additional 199,000 jobs lost.
Typically these dismal jobs report numbers would be great news for mortgage rates. However, it seems as though traders were expecting this sort of news, albeit not as bad, but nevertheless bonds are trading flat on the day. If worries circulate as the day goes on, we may change our position to lock in the rates we see now.
Current Outlook: neutral but ready to lock short-term