End of the Week Market update

This ended up being a pretty ugly week for interest rates.  Yesterday's Treasury Auction pushed the yield on a 30 yr Bond up to levels we have not seen since November. This caused a sell off in the stock market along with a sell off in the mortgage market.  (Lately that is a very unusual scenario). Every day This market gets more and more difficult to call.

This Mornings Employment Data was released with the Headline number of 8.9% for the Jobless rate matching expectations, while there was some good news with the Non Farm Payroll number showing a loss of 539,000 jobs VS the estimate of 620k... so a bit of a mixed bag on this report.

Thursday we also saw a mixed bag with the "stress Test" for banks.  Guess what? Most banks need more money based on the stress test, but none of them admit that they do.  The markets are critiquing the report, saying that the scenarios used were not accurate. I am not sure how much weight the market is putting on this report since it is a "newbie" in the financial reporting world.

Yesterday's sell off late in the day definately pushed interest rates up on Mortgages, but not as bad as bonds. This morning the market has been all over the place but is switching over to positive territory as we slide past noon on the east coast. This could be a sign that yesterday's sell off was more a touch of profit taking than anything which may mean we will see things settle down next week.

So, Short and Sweet: Rates Went up a bit this week, so do not be surprised to see the changes, and be cautious of anyone that says they did not!

Have a wonderful weekend. 

Rob

Robert Rauf

Mortgage Banker

www.RobertRaufHomeLoans.com   or my blog: http://activerain.com/blogs/rrauf

(732)223-1630 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

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