Today brings about very good news for rates and very disturbing news for the economy.
Even the lackluster expectations for new jobs at 200k were not only NOT hit but missed heavily coming in at 142k. This sent shock waves throughout the marketplace and the FNMA 3.0 took yet another 50 bps jump today and is not trading ABOVE 102!
For those wise enough to read my blog you now this is over 100bps increase to the indicies recent trading levels that were entrenched for a time between 100.5-101!
This give more buying power to those out looking as well as increased savings to those looking to refinance and remove mortgage insurance, consolidate debts or getting cash out from the equity gained.
If we close above 102 today that will bode well going into next week and may elevate the new range to 102-102.5!!!
Hang on its going to be a very busy Q4!
Here is today's data...
September Nonfarm Payrolls missed market consensus adding only 142K job gains (consensus 201K) with a downward revision in August from 173K to 136K. The Unemployment Rate held at 5.10%. Average hourly earnings are flat MoM with and are up 2.20% annually. The Labor Force Participation Rate fell from 62.60% to 62.40%. Factory Orders fell 1.70% vs. +0.20% prior. Treasuries are up 3/4th of a point following the payrolls miss and the curve has bull flattened
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