Rate Update October 8, 2010

Mortgage rates are at all-time lows this morning.

This morning’s monthly jobs report showed that overall the economy lost 95,000 jobs last month which was much worse than expected.  However, private sector job growth came in just below expectations.  The Bureau of Labor Statistics also revised lower previous month’s jobs figures leading the markets to believe the employment picture may be worse than thought.

The disappointing report makes it more likely tat the Fed will engage in further quantitative easing to help stimulate the economy.

We shifted to a floating bias yesterday and we’ll remain with this approach.

Current outlook: floating