It appears today's published job loss number is having the biggest influence on stock trading this morning. The smaller figure indicates that job cuts may be slowing, which is important for the economy to start to pull out of the recession. It fuels the theory that the economy may begin to recover later this year. This is bad news for bonds and mortgage rates because a slowing economy usually makes long-term securities such as mortgage-related bonds more attractive to investors. This news, coupled with concern about the next debt offering from the Fed has fueled another morning of bond selling.
This has not been a pleasant week for mortgage shoppers with rates ending the week much higher than it began. Next week is moderately important in terms of economic reports. There are a couple worth noting but they don't start until the middle of the week. There is no relevant data scheduled for release Monday, so there is little news to help change the current momentum in bonds. This could lead to further increases in rates until we get to the data. I'll be sending out more details over the next few days.
I am telling my refinance clients to continue to get their loan applications in regardless of this news, as with so much market volatility rates could quickly fall. It takes at least 15-20 days to receive mortgage underwriting approval anyway, so get your applications submitted and be in a position to lock an attractive rate should we see an improvement.
To apply, go to: http://www.tomdrasler.com/loanapplication
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