Mortgage Rates Predictions

  

  

  

  

  

  

June 6, 2008 | Rates are still trending higher, even with a 5.5% Unemployment Rate…

This mornings Employment Report had a little suprise hidden inside it.  The unemployment rate made an unbelievable +.5% increase in just a month!  Non-Farm Payrolls and Hourly Earnings ended up better than economist estimated.   The shocking unemployment rate usually would give Mortgage Backed Bonds the boost it needs to approach the 200 day moving average.  Already this morning Mortgage Bonds have seen a low of 98.5625 and a high of 99.25.  That is almost a 69bp swing!  With this volatility floating an interest rate is ludicrous.  Even though FNMA Bonds are currently +12bp on the day, it looks like going into the weekend and the fact that any real ELEVATED market moving economic indicators will not be reported until Retail Sales next Thursday, I believe rates are still heading higher.  We will keep an eye on the stock market for signs of weakness and keep you updated if Mortgage Bonds gain steam.