Mortgage Rates

Mortgage Rates Anthony Hood Equity Investment Capital Office: 949-891-0067 Email: tony@equityinvestmentcapital.com website: www.equityinvestmentcapital.com This Week; doesn’t kick off until Tuesday for the bond and mortgage markets, but stock will traded Monday. Last week selling took the 10 yr note up 12 basis points in yield however the MBS market still strong with the Fed back-stopping any significant selling. Treasury will auction $66B of notes and bonds this week beginning on Tuesday with the 3 yr, 10 yr on Wednesday and 30 yr bonds on Thursday. There isn’t a lot of critical data this week to work on. Weekly jobless claims, the Fed Beige Book and Sept PPI are about it. Friday’s employment report showing the unemployment rate that fell from 8.1% to 7.8% is still being discussed; the BLS saying 114K new jobs created in Sept but that part time workers jumped 873K, most of the increase were workers in the 20 to 24 yr old workers. Also adding to the decline in the unemployment rate, an increasing number simply no longer looking for a job. The reaction to the data didn’t excite the US equity market, the DJIA ended up just 34 points; the 10 yr note yield did increase as did MBSs but mortgages held better. The 10 yr had been weakening for a few days prior to the employment data, mostly due to relaxation over the EU mess. The Sept employment can, and should, be considered an outlier rather than an indication jobs are being generated, that seems to be what stock market investors are thinking.