Posted by dgarron in Untagged
Mortgage bonds prices closed above the levels where daily pricing was set applying downward pressure to mortgage rates. Rates found support as stocks fell from their best levels of the day. At the 10:00 am price point the DOW was higher by 126-points, however at the 4:00 pm ET equity close the index was higher by 55-points.
In news released at the open, unemployment came in @ 9%, higher than the expected 8.8% mark. Non-farm payrolls rose 244k, considerably higher than the expected 186k increase. The initial reaction was very negative to the higher than expected payrolls.
Mortgage bond prices rose this week pushing mortgage interest rates lower. We were positive throughout most of the week as stocks struggled and oil prices fell. The ADP employment figure was lower than expected and weekly jobless claims were higher than expected which generally helped mortgage bonds. Unfortunately the payrolls component of the employment report Friday morning surprised to the upside and some of the earlier improvements were erased.
The inflation data will take center stage next week. Any surprises to the upside on the consumer or producer sides will likely put upward pressure on rates. Foreign demand for the auctions next week will also be important.