Mortgage rates are slightly better this morning.
This morning’s jobs report was a mixed bag of data which is drawing a wide range of commentary amongst analysts.
Within the report there was data that would ordinarily cause rates to rise. This included…
- The number of jobs created in November 2009 was revised higher to 65,000.
- The headline unemployment rate dropped from 10% in December to 9.7% in January.
Within the report there was data that would ordinarily cause rates to fall. This included…
- The number of jobs lost in December was revised higher to 150,000.
- Q4 worker productivity jumped by more than expected and labor costs declined by more than expected (anti-inflationary).
The markets are trying to interpret the data. Currently stocks are trading lower on the day and mortgage-backed bonds (MBS’s) are modestly better. We wouldn’t be surprised to see some volatility throughout the day.
We are going to shift to a floating position because MBS prices have managed to break through technical resistance. However, we may not be floating for long.
Current outlook: Float