Fixed Mortgage Rates are even with yesterday.
Mortgage Backed Bonds are trading down about 30 basis points on the morning after some good news for the economy has been circulating around Wall St. The initial Job’s claims (the actual number comes out tomorrow) is showing Job Loss of 601,000, which is better than expectations of 635,000. Although 601,000 jobs lost is still a horrifying number, if indeed job losses are starting to decline this lagging news can be though of as the beginning of the end for the economy’s job woes.
Also making headlines this morning is retail giant Wall Mart with reports that store sales rose 5% in April. Analyst’s expectations were a rise of about 3%. Many feel that as Wall Mart sees increasing sales, so will the rest of the retail world.
With the Jobs Report being released tomorrow and the volatility that we have seen this morning in the bond market, it is looking like there is more risk in floating going into tomorrow. Bonds are currently in the middle of a trading range with another 50 basis points in either direction which would indicate that the safe move right now is to lock for short term transactions.
Current Outlook: Locking