Courtesy Tony Guaraldi, VP of Mortgage Lending Guaranteed Rate Mortgage
Holly Guacamole! We unexpected got a lousy jobs report this morning and Mortgage Bonds are the beneficiary! The Bureau of Labor Statics reported the economy created 74,000 jobs missing huge on the forecasts that predicted a range of 200k to 250k jobs! For comparison the number for October was 200k created and November was 241k created so this was really out of left field! The Jobs Report each month is always the biggest market mover and again its tied to Fed stimulus right now so reactions to the news are exacerbated for Mortgage Bonds. You can see the large green box on the right of the chart below showing the bond market rally today but you can also see we are a long ways off from where rates were in Mid-November. We will enjoy the improvement for now and continue to watch it as we still have some room to run before hitting resistance. Hopefully we can hold onto these gains today as its typically a volatile day after the jobs report like this!