Mortgage Rates slump on upbeat economic reports
NEW YORK (Reuters) -- U.S. Treasurys fell Monday after stronger-than-expected data on manufacturing, construction and home sales spurred hopes of a solid economic recovery and dented demand for safe-haven U.S. debt.
Losses were limited however, with many investors unwilling to take a strong position as they wait for the Federal Reserve to speak Wednesday after its two-day monetary policy meeting and look ahead to Friday's October non-farm payrolls report.
We had very strong data today which raises the risk that we might have a further sharp narrowing in the non-farm payroll job declines" said Josh Stiles, bond strategist at IDEAglobal in New York.
The benchmark U.S. 10-year Treasury note traded 12/32 lower in price to yield 3.43%, up from 3.39% late Friday, San Antonio mortgage rates up slightly.
The National Association of Realtors said pending sales of previously owned U.S. homes unexpectedly rose in September to the highest level in nearly three years.
Also, U.S. construction spending made its largest gain in a year in September, aided by a big rise in private residential building and a record pace of public construction, the government said.
Fed statement key
Market analysts Wednesday will put the Fed's Federal Open Market Committee's statement under a microscope.
At issue is whether more hawkish members of the Federal Open Market Committee, the Fed's policy arm, will manage to make the Fed statement slightly less dovish by removing the word "extended" from the Fed's current commitment to keep interest rates low for an extended period.
This blog was posted by Steve Brown of Gold Financial Services, universal City, TX. Gold Financial Services is a full service mortgage banking firm with a wide variety of conventional and government loan products, including Texas Veterans Land Board assistance program. www.mortgagesbysteve.com (210)862-2885 sbrown0007@aol.com
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