The Mortgage Update

Just thought you may find this interesting:   Rates have spiked up from their lows.  However, the current rate is back in line with the 3 year average.  If you missed the bottom, it is still a great time to refinance and a FANTASTIC time to BUY!!

The Mortgage Update

Mortgage rates rebounded yesterday, regaining a third of the ground lost on Friday. It was the third biggest move of the year. The economic calendar remains bare today. A 3-year Treasury auction is scheduled for this afternoon. However, all eyes are on the big event, the FOMC minutes to be released tomorrow. Depending on the rhetoric we could be in for another wild ride…

The Mortgage Update

Friday saw a historic market move, increasing rates higher, which was a direct effect of a stronger-than-expected Employment Situation Report. This report not only showed June job creation was better than expected, but revised the last two months into stronger territory as well. Most investors saw this as a profound indirect consideration to future Fed policy. There is no economic news to be released today or tomorrow. FOMC minutes are the market mover this week, scheduled to be released on Wednesday.

The Mortgage Update

Let’s get this party started, shall we? Treasuries declined in the early morning hours before a report economists predict will show U.S. employers increased hiring in June and jobless rates fell. These key economic indicators suggest the economy is recovering; adding speculation that the Fed will start to tapper QE as soon as September. Remember, this potential reduction, or tapering, accounts for most of the recent market volatility. There is an 800-lb gorilla in the room and its name is the Employment Situation Report…it arrived and it wasn't pretty for the bond market.

The Mortgage Update

Nothing happened yesterday. Weak trading levels tempered any rally in the market. Overnight, 10-year notes rose for a third day as investors sought safer assets after two of Portugal’s ministers resigned from the government, reigniting concern the European debt crisis is worsening. Today investors may start to adjust their position pre-NFP report, which is due out on Friday. Market closes early today and no school tomorrow! Happy 4th of July .

The Mortgage Update

It was a quiet day for the bond market yesterday. Weak manufacturing reports caused a slight rally and consequently a re-price for the better. Intraday volatility was caused by month end trades, however low volume kept the market steady. Treasuries rose for the second day amid speculation the Fed will announce today they are moving away from the tapering of bond purchases. It’s a light economic news day with Factory Orders released later this morning.

The Mortgage Update

Treasuries fell for a second day as economists predict strong manufacturing reports today. The ISM Manufacturing Index rose to 50.5 last month up from 49 in May. A report reading 50 is the dividing line between growth and contraction. U.S. employers added 165,000 workers last month after hiring 175,000 in May. Official hiring numbers will be reported on July 5th. It’s a short week with the markets closed on Thursday, so let’s make every day count this week.