Here is the Mortgage Market Update for the week of December 07, 2008 brought to you by Larry Iest of Hemet Mortgage.
LAST WEEK: Recap
Last week was a good week for mortgage rates and the bond market. The big news for last week was Friday's employment report. The report reveled the Unemployment Rate jumped to 5.0% from 4.7% with only 18,000 jobs created for the month. The most troubling is that job growth is a leading indicator for the economic health of our economy. The jobs report was weaker than expected and remember negative economic news is generally bad for the stock market and good news for the bond market. The bond market saw gains on the news and ended the week higher that it began helping mortgage rates along the way.
THIS WEEK: Looking Ahead
The week ahead is a slow week for economic news. We have no high impact reports out this week. This week the bond market will take guidance from the stock market and many of the Fed Officials that are scheduled to speak this week. Traders will be looking for any hints from the Fed Members as to their Next move at the Federal Reserve Meeting later this month. Mortgage bonds have experienced a great run up so they are ripe for a reversal. That might come this week with the lack of news. The most important report this week will be released Thursday when the Labor Department will post the weekly unemployment statistics. The report being released is only for one week of data which usually does not affect mortgage rats but on the heals of last weeks employment report and the lack of economic news this could move the markets.
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