Rate Update May 6, 2009

Fixed Mortgage Rates are even with yesterday.

Mortgage Backed Bonds are unchanged on the day even after the ADP report for April is showing job losses for the month at 491,000; which is much lower than the expectations of 642,000 jobs lost.  These preliminary figures are almost never accurate so most bond traders are likely waiting for Friday’s Jobs report before they make any moves.  If the Jobs report does come out showing a significant improvement it could put some selling pressure on the Bond market, which would likely move interest rates higher.  However, Mortgage Backed Bonds are still sitting on top of a very strong floor of support so it would take a lot of selling pressure to push bonds beneath that level.

Current Outlook: Floating ahead of Friday’s Jobs Report