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Mortgage Rates (11/4/2010)

November 4th, 2010 9:40 AM by Lehel S.

hursday’s bond market has opened in positive following the lead of overseas markets that have reacted favorably to yesterday’s Fed news. The stock markets are in rally mode also with the Dow up 180 points and the Nasdaq up 30 points. The bond market is currently up 27/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point over yesterday’s morning rates. 

Today’s sole monthly or quarterly data is the 3rd Quarter Productivity reading. It revealed a 1.9% spike in worker productivity that greatly exceeded forecasts. This is good news because high levels of productivity allows non-inflationary economic growth.

The Labor Department reported that 457,000 new claims for unemployment benefits were filed last week. This was also higher than forecasts, which is good news for the bond market. Analysts were expecting to see 445,000 new claims, meaning tomorrow’s monthly report ma y bring more good news to the bond market.

Tomorrow morning brings us the release of the almighty monthly Employment report. The Labor Department will post October’s employment stats early tomorrow morning. The report is comprised of many statistics and readings, but the most important ones are the unemployment rate, the number of new jobs added or lost during the month and average hourly earnings. Current forecasts call for no change in the unemployment rate to keep the national unemployment rate at 9.6%, an increase in payrolls of approximately 60,000 and a 0.1% increase in average earnings. Weaker than expected readings should renew concerns about the labor market and rally bonds enough to improve mortgage rates, especially if the stock markets react poorly to the news.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days. .. Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers. 
Posted in:General
Posted by Lehel S. on November 4th, 2010 9:40 AM

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