Rate Update July 2, 2009
In yesterday’s ‘rate update’ we recommended floating rates into today’s jobs report and fortunately our advice paid off. Both fixed rates and ARMs are down significantly this morning. FHA rates remain unchanged.
Analysts’ expectations were for 363,000 jobs lost last month. The report issued this morning showed that the economy lost over 100,000 more than this. The unemployment rate in the US now stands at 9.5%, the highest level since 1983.
Bad news for the economy is typically good news for mortgage rates and we’re seeing that this morning. For a more complete explanation on how the monthly jobs report impacts mortgage rates please refer to this link.
For now, technical trading patterns do not look favorable for interest rates. We are going to continue to float to see if rates can push lower but we need to be cautious because in today’s markets volatility can erase gains quickly.
Current Outlook: Cautiously floating
Posted: July 2nd, 2009 under Rate Update.
Tags: monthly jobs report, mortgage rates, Rate Update, should I lock or float my interest rate?
Pingback from My Mind on Mortgages » Rate Update July 8, 2009
Time July 8, 2009 at 6:44 am
[...] Since Wednesday of last week 30-year fixed rates have dropped by .375% as investors have shifted investment dollars away from equities and into “safer” bond investments (in that time both the S & P 500 and Dow Jones Industrial Average have also dropped). The shift away from risk was prompted by last Thursday’s poor employment report. [...]