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Daily Market Report 8/19/10

By
Mortgage and Lending with Evolve Bank & Trust NMLS #275652

 

 

 

Big News day today. Philadelphia Fed Index and the Initial Jobless Claims came in very low, which these 2 releases trumped that of the M&A talk (Intel buying McAfee for $7.7 billion). The Economic Leading Indicators show very slow growth ahead. This didn't bode well for Stocks, so they are trading very low so far this morning. As a result, Bonds made a comeback (after a bit of a correction this week). From the height to this morning's opening, the Bond Market had plunged 70 bps. It's made about half that back. If this bad economic news didn't happen, then we'd probably would have looked at another possible 80 bps drop. As a result, Mortgage Rates are up for the Day (bringing us closer to Monday's numbers).

 

 

 

Update: The Bond Market Improved enough to warrant better pricing (Interest Rates Improved some more).

 

Comments (2)

Lori Bowers
La Quinta, CA
The Lori Bowers Group

Sounds like most of the economy is still confused and challenged - looks like basically the same story as last week?

Aug 19, 2010 06:06 AM
Mike Bjork
Evolve Bank & Trust - Redondo Beach, CA

Sorry, the video is still processing.  You're right, the Traders and Economists are dying for anything positive to be released and will go over-board with their optimism, if anything remotely appears to be positive.  We have a long ways to go with our recovery.  I saw a very interesting little story on MSN this morning, which is a bit optimistic and will be great if it happens.  It's stating that many Call Center Jobs that we've lost to India over the years are now looking to return to the US.  India's costs have grown and now people are willing to take less money to work, so it appears to be something that may help the US with their current Job problems.  Here's the link, if you're interested (click here).  Thanks for the comment.

Aug 19, 2010 06:22 AM