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10 Year Bond Slumps; Rates Rise on Jobs Report

By Mike Jones

Mortgage and Lending with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) NMLS 223495

October 05, 2007 04:14 PM

Friday, 5 October '07--For the next couple of weeks, don't look for mortgage interest rates to move any lower. Today's surprise jobs report showed stronger than expected growth, sending stocks up and bond prices down. The ten year bond, bellwether to future mortgage interest rates, posted a yield of 4.64%, up 12 basis points.

Expectations for a second rate cut by the Fed diminished. Stay tuned, though. October has been known to hammer the stock market, and if this happens, the price of bonds will soar, giving mortgage lenders and REALTORS a little boost for the upcoming holiday season.

And that's the real estate opinion of this Tucson, Arizona mortgage lender.

Mike in Tucson

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Candy Henthorne

Results Realty - Spring, TX

Spring Texas Real Estate

Mike, thatnks for the update! I look at your blog for the latest news.

Oct 05, 2007 04:18 PM

Membership Cancelled

Pullman, WA

Hopefully this will jump start many parts of the country!

Oct 05, 2007 10:30 PM

Mike Jones

SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ

Mike Jones NMLS 223495

Candy, you're welcome. And you're up very late!

Nathan, thanks for visiting and commenting. Some do think that the credit crisis has abated, but there's no unanimity on the subject. With Monday being a holiday, we'll have to wait until Tuesday to get a sense of direction.

Oct 05, 2007 11:14 PM

Gaylen Thornton

Desert Heritage Real Estate - Surprise, AZ

October is scary in the markets and not just because of Halloween! It is always good to stay tuned and thanks for the update Mike.

Oct 06, 2007 02:32 AM

Lewis Poretz

Apex Home Loans - Annapolis, MD

Business Development Manager

does anyone think a second rate cut by the Fed will cause rates to drop or not continue to rise? I think the bottom is a long way away......................

Oct 06, 2007 06:04 AM

Billnulls Blog Florida Realty Professional

Charles Rutenberg Realty - Clearwater, FL

AHWD

thanks for the update!

Oct 06, 2007 08:23 AM

Cynthia Tilghman, Realtor® Onslow County NC Home Specialist

Kingsbridge Realty, Inc - Hubert, NC

Hi Mike,
Thanks for keeping us up to speed, I'll stay tuned.

Oct 07, 2007 12:41 AM

Ann Heitland

Retired from RE/MAX Peak Properties - Flagstaff, AZ

Retired from Flagstaff Real Estate Sales

Good info. Good graphic, also. How did you do that?

Oct 07, 2007 08:17 AM

Russ Higgins

Credit Justice Services - Memphis, TN

Credit Justice Services

Good information, as always, Mike. I always enjoy looking for your posts for information.

Russ

Oct 07, 2007 08:36 AM

Gaylen, thanks for visiting and commenting. I appreciate you.

Lewis, we're in a situation where cuts by the Federal Reserve stimulate the stock market, and as money flows out of bonds (selling) and into equities (buying stock) the value of the bonds deteriorates. This causes the interest rate on the bonds to go up, and mortgage rates follow. We'll never know where a "bottom" is until it is well behind us. Thank God that we can earn a living in good markets and bad.

Bill & Barbara Jo, it's always good to see you. Thanks for visiting and commenting.

Cynthia, ditto! Thanks for stopping by.

Ann, you can add the Active Rain link by opening a separate Active Rain page, clicking on the "link to Active Rain" and copying the html code. Then paste it in to your blog. If you want me to walk you through that, just send an email, and we'll get together by phone.

Russ, it's good to see you again. Thanks for stopping by.

Oct 07, 2007 01:21 PM

10 Year Bond Slumps; Rates Rise on Jobs Report

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