grauteam mortgage strategy | 1.31.08 end of day

Tomorrow has the potential to be a huge day for mortgage rates.  The volatility we have experienced since the FED lowered the Federal Funds Rate 1.25% in a matter of days will most likely make tomorrow exciting.  The Hourly Earnings, Average Work Week, Non-farm Payrolls, Unemployment Rate, ISM Index, and Consumer Sentiment Index all are released tomorrow.  If the numbers are of expectations we could see a rally in the bonds market.  They are expected to be as follow:

Hourly Earning | 0.3%

Average Work Week | 33.8

Non-farm Payrolls | 70K

Unemployment Rate | 5.0%

ISM Index | 47.5

Consumer Sentiment Index | 79.0

I’m banking on signs of continued weakness in the economy and have prepared many of my past clients for the rates we saw last Wednesday between 5.125%-5.250%!