Today's mortgage rates are getting slammed on the heels of the Non-Farm Payrolls report. Instead of hitting the consensus estimate figure of 135,000 jobs, the report showed a very large 180,000 new jobs created in March. Unemployment levels dropped to 4.4% pointing to underlying strength in the economy.
Mortgage bonds are selling off right now and that is driving mortgage rates higher.
On a normal trading day, the reaction in the trading pits would be extreme. But, with today being Good Friday, there aren't many people in the office, so to speak. Fewer traders results in lower-than-normal trading volume and that is causing prices to swing even more wildly than normal.
Mortgage bonds have been down as much as 29 basis points today and when bond prices go down, mortgage rates go up.
To make a tough situation tougher, the stock market is closed today. When it re-opens Monday, expect a continuation of today's bond sell-off as dollars move out of it and into the stock market.
More bonds sales will cause mortgage rates to climb even higher.
(Image Courtesy: Wall Street Journal)
