The Veridian Blog

The August non-farm payrolls report showed losses of 216,000, pushing the US unemployment rate up to 9.7%, it's highest level since 1983.  Worldwide markets initially improved on the news but have since struggled to find a clear direction.  The mystery in all this is that although the unemployment rate increased, it increased at a slower rate so people, namely investors, may think that layoffs are slowing down even if companies are nowhere near a position to hire again.

Mortgage rates have stayed pat or improved slightly this morning, although most rate sheets are still not out.  The 5/1 in particular has dropped this whole week to levels near the 4.0% mark - even for the high-balance loan variety.  The spread between the 5/1 and 30-year fixed is now at least a full percentage point, a difference we haven't seen in about 5 years.  Call us for details!