Mortgage Rates Made Strong Gains After Jobs Report
Mortgage rates made strong gains after the Jobs Report, basically erasing all the negative turns in the past week. The most prevalently quoted conforming 30yr fixed rates for top tier borrowers was still at 4.125%, but 4.0% was strongly in the picture today with lessor fees.
What caused this turn of events as we had a favorable Jobs Report and what happened should not have done such. The 10yr, the driver for MBS prices, is in a well-defined up trend channel - is still in the channel but at its lower end unable to break through to the down side (yield). Employment in October did not meet the expectations but were close enough and upward revisions for August and September made up for the less jobs in October. While employment gains exceeded 200,000 for a ninth straight month in October, the 214,000 increase fell short of the 235,000 forecast by economists. The result followed a 256,000 advance the prior month that was more than initially estimated, Labor Department figures showed today..
Janet Yellen sent a direct message to European officials today. The EU and ECB continue to stumble around, the result is the EU is quickly moving back into recession, it would the third one since 2008. She didn’t mix words, that “Central banks need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets,”…. “Given the slow and unsteady nature of the recovery, supportive policy remains necessary.” Yellen said that while fiscal policy has a role in stimulating growth, central bankers should be prepared to act if government support falls short. Here in the US there has been no fiscal policy from the do-nothings in Washington, it has all been the central bank. Europe is continuing to drag on the global economy.
In summary, a great day for everyone in the process of obtaining a mortgage as we experienced a strong reversal of the recent rise in interest rates. We are certainly not out of the woods and what happens over the weekend and next week can potentially erase today's improvements quickly, regardless we are happy to have won today's battle with the almighty jobs report. Today's move marks a strong point for technical rejection (in my opinion) of rates rising (at least for now) as we look forward with optimism of further improvements. Loans closing within 15 days are locked, considering today's movement loans closing within 30 should contemplate locking in to protect themselves from any future volatility that may erase today's opportunity.
Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806 or visit me on my website at www.CallTheMoneyMan.com I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.
What caused this turn of events as we had a favorable Jobs Report and what happened should not have done such. The 10yr, the driver for MBS prices, is in a well-defined up trend channel - is still in the channel but at its lower end unable to break through to the down side (yield). Employment in October did not meet the expectations but were close enough and upward revisions for August and September made up for the less jobs in October. While employment gains exceeded 200,000 for a ninth straight month in October, the 214,000 increase fell short of the 235,000 forecast by economists. The result followed a 256,000 advance the prior month that was more than initially estimated, Labor Department figures showed today..
Janet Yellen sent a direct message to European officials today. The EU and ECB continue to stumble around, the result is the EU is quickly moving back into recession, it would the third one since 2008. She didn’t mix words, that “Central banks need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets,”…. “Given the slow and unsteady nature of the recovery, supportive policy remains necessary.” Yellen said that while fiscal policy has a role in stimulating growth, central bankers should be prepared to act if government support falls short. Here in the US there has been no fiscal policy from the do-nothings in Washington, it has all been the central bank. Europe is continuing to drag on the global economy.
In summary, a great day for everyone in the process of obtaining a mortgage as we experienced a strong reversal of the recent rise in interest rates. We are certainly not out of the woods and what happens over the weekend and next week can potentially erase today's improvements quickly, regardless we are happy to have won today's battle with the almighty jobs report. Today's move marks a strong point for technical rejection (in my opinion) of rates rising (at least for now) as we look forward with optimism of further improvements. Loans closing within 15 days are locked, considering today's movement loans closing within 30 should contemplate locking in to protect themselves from any future volatility that may erase today's opportunity.
Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806 or visit me on my website at www.CallTheMoneyMan.com I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.
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