Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on April 4, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +15bp

Today is the Jobs Jamboree and it held a few surprises, especially after traders bought the ADP data on Wednesday.

Non-farm Payrolls showed a loss of 80K versus expectations of -50K, which should give bonds some strength.  Adding to that, the Unemployment Rate was higher than expected, coming in at 5.1%.  More good news for bonds came in the Average Work Week ticking up and also beating expectations; 33.8 versus 33.7.  Even Hourly Earnings was in line with expectations, so bonds should get a boost today.

We are leaving the caution in our stance because bonds are already off their highs, which means they strength they should have gotten has already “worn off”.  Time will tell, but if bonds cannot hold their ground on a day with favorable news, the trading range may still be in question.

If things change enough, we will post another update.  If not, have a great weekend.

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