The unemployment rate inched up to 8.2 percent and the economy added only 69,000 jobs in May, says the Labor Department. Economists had expected at least 150,000 new jobs.
It gets worse: revisions from previous months show the economy added 49,000 fewer jobs than what the department originally reported.
That's not the type of news investors expected to see during the month that marks the three-year anniversary of the supposed recovery. The recession ended in June 2009, according to the National Bureau of Economy Research.
The just released report has already taken a hit on the stock market, which fell sharply after the dire news.
But amid the avalanche of bad economic news, there's good news for mortgage borrowers.
Already low mortgage rates have tumbled this week and might fall further as investors remain concerned about the prolonged European debt crisis.
The yield on the 10-year Treasury had fallen to a record low of 1.55 percent. After the jobs report came out, the yield slid to 1.46 percent. Mortgage rates tend to follow the direction of treasury yields. Another indicator is the Freddie required net yield, which fell to 3.03 percent after reaching a low of 3.08 percent on Thursday.
Mortgage borrowers: this is your day. Enjoy the low rates while they last.