Please note our Jumbo rates at the bottom of the page.  We have some very aggressive rates!

The Week in Review:

Last week was as expected with little market moving news until Friday's Jobs Report.  So, last month the jobs report came in way below expectations with a loss of 4000 jobs.  Additionally, the prior three months were adjusted down giving an average job growth rate for the 4 months of only 33,000 jobs per month.

Well, on Friday the jobs report came out higher than expectations at 110,000 new jobs on expectations of 100,000.  Additionally they adjusted last months report up by 93,000 jobs!  The Department of Labor needs to get it together.  What this did to the market on Friday was create concern about inflation, which is the enemy of the Bond market and Home Loan rates.  The result was a .125% rate increase on conforming rates.

Today the Bond Market is taking a break for Columbus Day and will be back at it again on Tuesday.

The Week Ahead:

On Tuesday we will see the minutes from the last Fed Meeting and this will give the Bond market something to chew on as it relates to the Feds current view on inflation and the economy in general.  This is the "unplugged" version of the formal statement that's released after the fed meeting.

Technically, Bonds are trading below the 200 day and 25 day moving averages creating difficult levels of resistance.  The easy path is for Bonds to worsen so it will be an interesting week.

Recommending cautiously floating through the middle of the week.

Interest Rates:

Conforming (below $417,000)

30yr Fixed         6.25%

3yr ARM           5.875%

5yr ARM           6%

7yr ARM           6.125%

 

Non Conforming (greater than $417,000)

30yr Fixed         6.625%

3yr ARM           6.25%

5yr ARM           6.25%

 

Justin Whitney

Home Loan Consultant

C- 843-270-8366

F- 866-650-0216

justin_whitney@countrywide.com

www.loansbyjustin.com