Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 1, 2008

Locking Stance:  LOCKING     Mortgage Bonds:  3bp

I decided to wait and see what happened after the markets “digested” this morning’s Jobs Jamboree before making this report (besides, I am on vacation, lol). 

Once again, the payrolls were better than expected, but the unemployment rate went to the highest in 4 years, beating expectations.  How can that be?  It is the way the BS, I mean BLS, calculates the data.  They seem to like confusing things a bit when they really don’t want the markets to move much, and they succeed most of the time.

The Average Work Week dropped a bit, bad for bonds, as Hourly Earnings were in line with expectations.  Adding to the dilemma is the fact that the ISM Index again beat expectations.

So, there we have it, another mixed bag of information for the markets to digest.  Look at it close enough and we still see stagflation written all over it.  Where are the markets going from here, rely on technicals and they still favor lower prices and higher mortgage rates ahead, at least for now.  Time will tell for sure, but for now, odds favor locking.

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