East Bay Mortgage Market Update for February 4th 2011
Economic News: Most of the economic news for the week was positive and we saw the DOW close back over the 12,000 level for the first time since the financial crisis began. The Employment Situation reported today has had the most impact as the unemployment rate fell to 9.0%. The data was a bit of a mixed bag since there was only a 36,000 increase in the Nonfarm Payrolls which was well under the consensus 140,000. A big factor in the decline in the unemployment rate was that many folks were dropping out of the labor force. The strength of the figures can be argued either way but they did lead to a selloff in the bond market.
Mortgage Markets: The 10 Year Note shot through the 3.50% level and is currently trading at 3.64%. This is highest yield since May of 2010. Mortgage Backed Securities are also losing ground and many banks are raising their rates this afternoon. While we are certainly higher than lows we saw back in October mortgage rates are still fantastic.
Next Week's Reports: Thursday: Jobless Claims & Treasury Budget Friday: International Trade & Consumer Sentiment
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top notch Bay Area advisors for your review if you are in need of a referral.
Stay tuned for the Next East Bay Mortgage Update
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