The Veridian Blog

Hi Everyone,

Despite a 25-year high unemployment rate, Friday’s bond market found itself in negative territory extending losses from Thursday’s sell off as investors flocked to equities.   The Labor Department reported a rise in unemployment to 8.50% during the month of March with 663,000 jobs lost during the month.  That totals over 2 million jobs lost in 2009 year-to-date which in perspective, is already the fourth worst year on record so far – and we still have 3 quarters to go! 

Typically, this is great news for bonds and low mortgage rates offer a silver lining as the economy plunges into new depths.  Last week, however, rates increased after the big report – likely due to bond investors expecting a worse reading. 

This week we can expect a roll-out of some Making Home Affordable programs on the wholesale level, followed later in the month by the reversion of the high-balance conforming limit back to $729,750 in the Bay Area.