Rate Update February 6, 2009
Fixed mortgage rates are slightly higher than yesterday.
Just as expected, this morning’s Jobs Report looked bad. The economy shed 598,000 jobs in January (above expectations of 540,000 jobs). About 3.6 million jobs have been lost since December of 2007, but half of that number has come in the past 3 months!! This brings the unemployment rate to 7.6%.
This news hasn’t affected bonds much although they are trading up from early morning lows. This is a good sign; although bonds did touch low levels early they have been able to bounce back. Technically, Mortgage Bonds are close to a level of support but have quite a bit of room to increase from here.
Current Outlook: Cautiously Floating