Mortgage bond prices initially opened positive this morning following relatively bond friendly employment data only to fall back off to near neutral on the day. We still are slightly positive since pricing yesterday morning. Additionally, unemployment came in @ 10.2%, higher than the expected 9.9% mark...a bond friendly figure. This is great news for the market and better news for Home Buyers. This bad news for the unemployed is going to help you get a better deal on a home purchase. Non-farm payrolls fell -190k, weaker than the expected -175k...another bond friendly piece of data. However, the average hourly earnings component rose 0.3%, higher than the expected 0.1% increase and inflationary in nature....not bond friendly. Usually the two headline figures generally outweigh the third component of the report but as we saw this morning volatility still remains. This we do not care that much about, but it looks like rates will stay low and that is what matters. But with this bad unemployment and earnings news, many Buyers will stall and some Sellers will get worried. This is where the savvy Buyers will use the seasonal slow down coupled with the bad news and BUY NOW. Take advantage of this temporary bad news (granted you have job security) and make your move. There are so many factors that say in just 3 years this market will be gangbusters with $79 million: Gen Y coming into 1st time home buying age and the Federal Government blowing up and the Northern Virginia area is still growing. With continued no new housing being built plus we are already in short supply in many price ranges. The market looks great for Home Buyers. Let me make one thing very clear. I am talking about moving up within the market and/or buying home for long term gains, not flipping. I have never believed in flipping homes. I think that if the opportunity presents itself, its fine, but to buy with flipping as the end result is too risky. So if you want to own a home. If you want to create long term wealth. Do not miss the opportunities this market is presenting you.
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