Weak job number pushes yields to new lows
Posted June 1, 2012
What a Jobs Report! Unemployment rose to 8.2% with only 69,000 Jobs being created for the month of May. Economists’ expectations were for 150,000 new jobs! Disappointing to say the least, and boy have the markets reacted accordingly. The Dow was down over 200 points in mid-day trading, and both the 10 year and 30 year Treasury Yields have now hit new record lows.
The ISM Index came in weaker than expected for May, indicating that manufacturing in the US, like the jobs market, is under pressure as well.
Domestic economic weakness combined with the continued uncertainty in Europe has really paved the way for an era of low mortgage rates. Of course, now the QE3 conversation is back in full swing, so the Fed’s reaction in the coming days and weeks will be an important one for us to watch. With rates so low, many economists are wondering just what type of impact any further monetary easing might have on mortgage rates and the markets?
What we’re experiencing in the mortgage rate market is unprecedented. It’s certainly fun to be watching history unfold right in front of our eyes.
Happy House Hunting Triangle! What a way to kick off June! Have a great weekend.