Thursday, July 11, 2013

The Armature Economist Report: 07/11/2013

The jobs report came out  showing 195,000 new jobs.  This was much higher than the 165,000 expected.  The Labor Dept also revised the jobs count for May higher than first reported as well.  So, that picture looks very good for the economy.

Unfortunately that's a bad thing for the bond market and likewise the mortgage backed securities market, so mortgage rates have jumped today.  However, I'm showing them, down below, the same as last Friday, because it's very likely they'll come back down some next week after things settle down.  Today's knee jerk reaction is fairly typical, and was exacerbated by the fact that not many investors were actually participating in the market toady since the lure of a four day weekend distracted many.  

The unemployment rate remained the same at 7.6%, due mainly to those unemployed that are now getting back into the jobs market.  So, we are going to see the effects of "shadow workers" for some time to come.