2 July 2009 ? The mortgage bonds have opened up 22bps this morning and briefly went down to 16 bps however they have really started to heat up and are now up 31bps. Investors are moving to the safety of the bond market due to the unemployment numbers coming in at 467,000 versus expectations of job losses of 365,000. The job loss report is not even that accurate as they use a birth to death ratio to determine job losses for this forecast. The actual number of job losses may be as high at 670,000. This would seem more accurate as the unemployment number jumped to 9.5% and this number is determined by actual phone calls that survey 60,000 households. The Dow Jones is down 176.
The 30 year fixed rate has once again hit 5% and this is with no points or origination fees. The markets are closed tomorrow so enjoy the holiday weekend and I will return on Monday, July 6th, 2009.Email This Post To a Friend.