Orlando Mortgage Blog

Today's employment number was expected to show only 40,000 +/- private sector jobs added for August and came in at 67,000. "Not as bad" is all it takes apparently to stimulate the good news parched markets who were expecting much worse news. How soon we forget that the month before the private sector added 107,000 jobs so losing 27,000 less than expected apparently is enough to forget about the fact that 67,000 is still 40,000 less than what was added the month before. The overall number remained, now two months in a row, at a loss of 54,000 jobs lost. So, the 10 year bond jumped on the news from last evenings close at 2.62% to 2.74% in a flash. Temp jobs were up by 17,000 and seen by some as a prelim to future full time hiring. So that's something. One more (2nd or 3rd) job many can work for with no benefits packages.

I expect rates will reflect the report and bump rates at least an .125% when they are posted later this morning.

11 AM Update: Rates are up .125% as expected and about .25% above last week. Like weather in Florida, if you don't like it now just wait 5 minutes and it will probably change. After hitting 2.74% on the 10 year bond this morning after the initial releases it has backed off a little to 2.71% a few minutes ago. The knee jerk reaction right after the employment report this morning has little information to work with the rest of the day but has calmed down slightly after the news and the reality of a 3 day weekend sinks in or many are simply already off for their holiday. Since there really wasn't much real change I'm hoping things calm down on the rate front and we don't see pre-election speculation or fears run us for the next few weeks.