Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Friday's bond market has opened in negative territory after today's major employment news did not reveal significantly weaker than expected readings. The stock markets have reacted mildly to the news though with the Dow up just 30 points and the Nasdaq up 8 points. The bond market is currently down 12/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point over yesterday’s morning rates.
The Labor Department reported this morning that the unemployment rate moved from 9.4% in July to 9.7% last month. This was higher than the 9.5% rate that was expected, which can be considered good news for bonds and mortgage rates. However, only 216,000 jobs were lost during the month when analysts were expecting to see a slightly larger decline. A revision to July's job loss number showed that 276,000 jobs were lost compared to the 247,000 announced last month. But this worked against bonds today because the 216,000 now shows a larger improvement from July to August than what was predicted.
Also hurting bonds this morning is the average hourly earnings reading in the report that revealed a 0.3% rise in earnings. This was much higher than the 0.1% that was expected, meaning earnings rose more than …..
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©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com
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