Today’s jobs report has tanked the stock market and interest rates on Mortgages are sharply lower near thier 3 month lows.
American employers added fewer workers than forecast in April and the jobless rate unexpectedly fell as people left the labor force, adding to concern the economic expansion is cooling.
Payrolls climbed 115,000, the smallest increase in six months, after a revised 154,000 gain in March that was larger than initially estimated, Labor Department figures showed today in Washington. The median estimate of 85 economists surveyed by Bloomberg News called for a 160,000 advance. The jobless rate fell to a three-year low of 8.1 percent, and earnings stagnated.
It feels like we’ve harped on the high-risk nature of tomorrow’s Jobs report (NFP) ad nauseam. You can see the various iterations of that harping in commentary from yesterday and beyond, but the key points are these:
- NFP is not a guarantee of big movement, but as far as economic events go, it has as much potential to move rates markets as anything.
- Rates have been at all-time lows in terms of Best-Execution and the costs for those rates have been near all-time lows.
- Rates have approached and bounced higher from current levels several times now without breaking lower.
- Tomorrow’s report could cause rates to improve if the report is weak, but probably not as fast as a strong report could cause rates to deteriorate.