In yesterday’s ‘rate update’ we recommended floating rates into today’s jobs report and fortunately our advice paid off. Both fixed rates and ARMs are down significantly this morning. FHA rates remain unchanged.
Analysts’ expectations were for 363,000 jobs lost last month. The report issued this morning showed that the economy lost over 100,000 more than this. The unemployment rate in the US now stands at 9.5%, the highest level since 1983.
Bad news for the economy is typically good news for mortgage rates and we’re seeing that this morning. For a more complete explanation on how the monthly jobs report impacts mortgage rates please refer to this link.
For now, technical trading patterns do not look favorable for interest rates. We are going to continue to float to see if rates can push lower but we need to be cautious because in today’s markets volatility can erase gains quickly.
Current Outlook: Cautiously floating