What a ride! we talked about market volatility yesterday remaining extreme over the next week or so; today's November employment report set it up. A huge miss on estimates from analysts and economists; as we always note, trying to predict employment is difficult if not impossible. The November unemployment rates was widely expected to be unchanged, it jumped 0.2% to 9.8% the highest in months. Mortgage back securities have already been down 41 basis points…then up 62 basis points and now have retracted to only being up 32 basis points. We lost well over 100 basis points in the mortgage markets…which is a ton!!! You will see the Stock market suffer with these reports as well.
No matter how its sliced, the employment report has thrown a wet blanket over all the recent more positive economic data that had sent equity markets exploding this week and interest rates up. With job markets still soft the US economy isn't likely to sustain any substantial growth. Looking for anything positive from the data this morning, the upward revisions in October and September is about it.
Hold on tight! If you are in the market for a new mortgage, be patient, we will get a little improvement over the coming weeks, but do not get greedy as this will hurt you in the end.
If you have any questions, feel free to email me anytime, click on my name to contact me.
Thank you very much and have a great day!!!!!
Vice President
Mortgage Network
Acton MA 01720
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