As reported in Yahoo finance today, the US Government may have underestimated the job loss numbers in the us. While the Government estimated 7 million jobs had been lost since the downturn in dec of 2007, new evidence is suggesting that number is under by 1 million and the actual number of job losses is around 8 million.
This has of course had a negative effect on the stock market which is down around 268 points and has helped the bond rally as the yield has dropped to 3.60 on the 10 year note.
For anyone unfamiliar with the bond market's effects on mortgage rates, it is generally as follows. If the bond yield goes up rates will generally worsen. If the bond yield goes down rates will Generally improve. With a big move of .1 down to 3.6 we should see rates improve a good bit tomorrow when the lenders post their early morning rates.
Kind of unfortunate but what's bad for the economy a lot of times is good for mortgage rates.
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