Orlando Mortgage Blog

Surprising Jobs Report

November 8th, 2013 9:16 AM by BILL WILBANKS

The Jobs report published at 8:30 ET came in at 204,000 for October (good news if you got the job/bad news for mortgage rates). That's quite a difference from the 120,000 forecast by most economists ahead of the announcement. August and September saw a combined 60,000 upward adjustment to previous reports as well. It will remain to be seen what kind of adjustments come out of this somewhat shocking number and I believe we'll see them. The unemployment moved to 7.3% from 7.2%, pretty much as forecast. The DOW Futures appeared to dip immediately to down $48 but since bumped back to near unchanged before the opening bell.

The 10yr was sitting around 2.61% before the announcement and within moments rocketed to 2.73%. That would certainly likely mean a bump this morning on 30 year fixed rate of 0.125% +/- if it remains there. Add to that that this is a three day weekend (Veterans Day) and the markets will be closed on Monday so that should magnify lender treasury calls on the conservative side today. Buckle your belt. Positive job numbers like this has investors rethinking the Fed taper start date plans...that's why the jump. Here's a good article addressing today's bump for those who like details: http://www.mortgagenewsdaily.com/consumer_rates/331058.aspx

Bill Wilbanks

Posted in:General
Posted by BILL WILBANKS on November 8th, 2013 9:16 AM


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