Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 9, 2009

Locking Stance: LOCKING   Mortgage Bonds: 0bp

Today is the big day, the monthly jobs data was released and this is a major player to say the least in regards to current fundamentals and the future of mortgage rates.  The “Jobs Jamboree” offers a quick look at the economy through last month, providing not just information on unemployment, but a little insight into inflationary pressures as well. 

Take a look at this morning’s data…

  Actual Expected
Non-farm Payrolls -524K -525K
Unemployment Rate 7.2% 7.1%
Average Work Week 33.3 33.5
Hourly Earnings 0.3% 0.2%

 

While Non-farm Payrolls came in basically inline with expectations of 525K, the last three months were all revised higher, making the Unemployment Rate jump 0.4% from November.  The puts the Unemployment Rate at the highest it has been in about 16 years.  Also, the markets had been expecting job losses to be as high as 700K after Wednesday’s ADP Employment Report, so the data is actually a little better than the market was expecting in the last few days. 

On the inflationary spectrum, Hourly earnings were up slightly more than expected, though offset slightly by the fact the Average Work Week dropped.  And while the fundamentals are still there to an extent, I don’t feel they justify current MBS pricing, which faces a tough resistance layer right now.

What does this mean for Florida Mortgage Rates?  Mortgage rates are likely to remain steady, and if stocks move higher as the look to do at the moment, mortgage rates may actually see slightly worse pricing later today.

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