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The economy shed another 80,000 jobs in March 2008, according to this morning's Non-Farm Payrolls report, and was 60% more than the initial estimate of 50,000.

Add that to the revised January and February losses of 76,000 each and it appears that Fed Chairman Ben Bernanke was spot on when he said that the economy likely contracted in the first quarter of 2008.

But, weak employment data today means that consumer spending should suffer later this year and less consumer spending makes rate-cut-fueled inflation less likely.

That is spelling good news for mortgage shoppers today as rates are down about 0.125% from market open.

But should they be?

Mortgage rates are a prediction of the future and news about the economy -- positive or negative -- is always "baked into the cake" well in advance of the news actually happening.

In stock broker parlance, it's "buy on the rumor, sell on the news".

In mortgage bond circles, it means that expectation-meeting data will not change rates.  When expectations are wrong, however, rates can move a lot.

So, let's compare the expectation of the March jobs report to the reality of the jobs report.  What we'll find is that the variance is a drop in the proverbial ocean.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.