March 4th, 2011
The Dow is currently down 58 points while the Nasdaq has lost 12 points. The bond market is currently up 8/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.
The Labor Department gave us today’s extremely important data. They announced that the unemployment rate slipped from 9.0% in January to 8.9% last month and that 192,000 new jobs were added. Analysts were expecting to see the unemployment rate rise to 9.1% and that 183,000 new jobs were added during the month.
The report also revised January’s payrolls number higher by 27,000 jobs. This means that the employment sector was a little stronger in February than what analysts had expected, making the data negative for bonds and mortgage rates.
At least one would think so. It appears that yesterday’s stock rally had better numbers built into it than we saw this morning. In other words, stock traders were actually a little disappointed by the results, even though they exceeded analysts’ forecasts. This bodes well for mortgage shoppers as it has led to bond buying and lower mortgage rates.