Rate Update July 2, 2010

Mortgage rates unchanged this morning.

Overall, this morning’s jobs report showed that 125,000 jobs were lost in June in line with expectations.  However, the markets were more focused on the private sector job growth which came in at 83,000.  Some analysts had predicted that the private sector added 131,000 jobs last month so the results are somewhat of a disappointment.

Ordinarily a disappointing jobs report would mortgage rates move lower but as I mentioned in yesterday’s ‘rate update’ the market had already priced in a weak jobs report back on Monday.

On the front page of the online WSJ this morning there is an article about the “flight-to-quality” trade and how it has impacted mortgage rates (you can see it HERE).  The article states that according to Freddie Mac’s index for average 30 year fixed rates they currently at the lowest level since they started keeping track.

Current outlook: neutral