Mortgage Rates have been under selling pressure this week (reminder with mortgage bonds/MBS go down, rates get worse and visa versa). Good news today is The non-farm payroll numbers came in REALLY BAD! 210,000 new jobs created and market was looking for 550,000. The challenge is that every other news item released this morning was not friendly to bonds.
That said, bonds are trying to rally and at the moment (more into treasuries than MBS), the stock market which is getting hammered AGAIN!!, and this is helping, as investors seek safe harbor in bonds. It’s too soon to say how this plays out but at the moment, but positive is that we have held support again this morning and are now seeing a bounce.
Bottom Line: Until we get more clear direction, at this moment we are much closer to the bottom of the range and this suggests “cautiously” floating.