Rates in a testing pattern today 6/3/11

Rates are in a testing pattern today 6/3/11

With the employment numbers including non farm payroll coming in below expectations today it sparked a massive +47bps gap up opening. However our last 3 weeks of almost non stop increase to bonds and treasuries may be at a check point before we see further rise.

I say this as the bonds with no additional news to change took an almost immediate -22bps swing back down and yesterday closed about 25bps below the low mark I expected to see.

Does this mean the rally for bonds is over?

No, it simply is a normal pattern that anything with a long trend upward or downward has points where the markets tests its direction to ensure it is moving properly.

So with that said I think today (also being Friday and these are normally not major market mover days) we trade close to the 101 range on the FNMA 4.0 and I still believe once we pass this test point we should see bonds rally upward.

Bottom line is... prices are low, rates are lower and NOW is an excellent opportunity for both first time buyers as well as move up buyers to get a lot of house for the money!

If you have questions on financing, products, rates investment properties or investment property strategy please feel free to call or email me.

David Shamansky
US Mortgages
1745 Shea Center Dr 4th Floor
Highlands Ranch, CO 80129
720-524-8020
NMLS#245170
Equal housing lender

*above commentary is from my personal review of market driving factors and news in the US and globally but does not guarantee any direction on rates and market movements