Rate Update September 3, 2010

Mortgage rates are worse this morning.

As I eluded to in yesterday’s ‘rate update’ this morning’s jobs report is pressuring mortgage rates higher.  This morning’s Bureau of Labor Statistics report showed that overall the economy lost 54,000 jobs in August.  However, when you back out the impact of the temporary US census workers private sector employers added 67,000 jobs which was better than expected.  This is good news for the economy and bad news for mortgage rates.

This morning’s jobs report is providing temporary enthusiasm in the markets.  Stocks are trading higher and bonds are lower.  However, I think most analysts still share a cautious view for the future.

From a technical standpoint mortgage-backed bonds are still trading above technical support which is a good long-term sign.  Hopefully you followed my advice yesterday and locked.  If not, hopefully you have time to float into better rates.

Current outlook: floating long-term