The Labor Department gave us big news this morning with the release of May’s Employment report. It revealed that the U.S. unemployment rate rose by 0.1% to 7.6% last month and that 175,000 new jobs were added.
Experts were expecting to see 7.5% and 160,000 new payrolls……pretty close, but no cigar.
The increase in the unemployment rate is good news for the bond market (mortgage rates) because higher unemployment reflects sector weakness.
Today’s bond market has opened in negative territory following the release of this morning’s big economic news. The stock markets are showing strong gains as a result of the data, pushing the Dow higher by 166 points and the Nasdaq 26 points. The bond market is currently down this means mortgage rates will be higher by approximately .125 – .250 of a discount point.