Florida Mortgage Rates – Week in Review

by Florida's #1 Mortgage Planner on June 9, 2008

First, let’s get into what happened in the bond’s “pit of despair” this last week.  Getting the week started bonds gave the appearance that they renewed their strength, working off news that Wachovia ousted their CEO. On that news and more, money flowed from stocks over to bonds, giving bonds a needed correction, even breaking back above their 200-day moving average, “tricking” many mortgage professionals.

I ended up right on with my analysis on June 3 and June 4 (at Florida Mortgage Daily), talking about the move being unsustainable, and bonds came crashing down on Wednesday after the ADP report hinted a better jobs number.  Thursday didn’t see any help as the jobless claims beat expectations as well.

Then came Friday, the market’s savior was found in the Jobs Jamboree.  While payroll beat expectations and hourly earnings rose, all eyes focused on the headlines that unemployment jumped to 5.5%, the largest jump in over 20 years.  Bonds rallied around that number even though the BLS data has been shown to be inaccurate due to the way it is calculated.  As a result, bonds ended the week up on the week, but only by a measly 3 basis points, leaving rates the same as they started when the dust settled.

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