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

Given the current condition of the economy it’s expected that tomorrow’s jobs report will be ugly which would ordinarily help mortgage rates move lower.  However, these are not ordinary times.  Because analysts are expecting the jobs report to be poor (the market currently expects jobs losses of 363,000), even a modest sign of hope could push rates higher.

Given yesterday’s increase in fixed rates we feel comfortable floating rates into the report tomorrow.

Current Outlook: Floating into tomorrow’s jobs report