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How Did The Employment Report Affect Mortgage Rates?

By admin | March 5, 2010

pPosted To: a href="/consumer_rates/"Mortgage Rate Watch/a/pWhen looking back on the week that was, it seems like mortgage rates went on a wild ride. Lenders repriced for the better and lenders repriced for the worse, sometimes they did both on the same day. Yet, ahead of the most influential economic report released by the government, rates managed to find their way back to where they started the week: NEAR 2010 MORTGAGE RATE LOWS. At least until 8:30am this morning. At 8:30 am eastern time, the Bureau of Labor Statistics released the monthly Employment Situation report. As stated already, this is the single most important piece of monthly economic data released to the market. Since consumer spending accounts for the vast majority of our economic growth, market participants track jobs as a way to gauge consumer demand and economic activity. If the...(a href="http://www.mortgagenewsdaily.com/consumer_rates/138619.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/138619/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=138619" width="1" height="1"

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« MBS LUNCH: Bonds Soaring As 10yr Flirts With 2009 Ranges | Home | Housing Policy: The Message is as Important as the Mechanism »

How Did The Employment Report Affect Mortgage Rates?

By admin | February 5, 2010

pPosted To: a href="/consumer_rates/"Mortgage Rate Watch/a/pMortgage rates improved a few basis points yesterday as panic set in on Wall Street. Headline news called attention to a developing crisis of confidence in the European Union where Greece, Spain, and Portugal all face ballooning budget deficits and rising government borrowing costs. Fear caused a global stock market sell off which led nervous investors to reallocate funds into what is considered to be the safest investment in the word, US Treasuries. This quot;flight to safetyquot; into the bond market helped mortgage-backed securities prices move higher which allowed lenders to pass along slightly lower mortgage rates. While improvements were noted,many originators were expecting more aggressive loan pricing from lenders, but as has been the case over the past few weeks, 4.75% continues...(a href="http://www.mortgagenewsdaily.com/consumer_rates/133561.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/133561/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=133561" width="1" height="1"

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« GSE Portfolio Update: Delinquencies Up, Refinances Down, Loan Mods a Function of Labor Market | Home | MBS CLOSE: Insult To Injury? »

How Did the Employment Report Affect Mortgage Rates?

By admin | January 8, 2010

pPosted To: a href="/consumer_rates/"Mortgage Rate Watch/a/pMortgage rates moved higher for the second day in a row yesterday as investors took profits and set up positions for the release of Non-Farm Payrolls data today. As a reminder, when mortgage-backed securities prices move lower, lenders are forced to offer higher mortgage rates. If MBS prices move higher, lenders can offer lower mortgage rates because they can sell loans in their pipeline of loans for a higher price. Below is the chart I used earlier this week to illustrate this relationship... GREEN is MBS prices and RED is mortgage rates Today was a major event for the mortgage rates outlook. For almost the entire month of December, the bond market reflected a quot;worst is behind usquot; economic perception. Long term Treasury yields moved considerably higher, pushing mortgage rates over...(a href="http://www.mortgagenewsdaily.com/consumer_rates/128153.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/128153/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=128153" width="1" height="1"

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« MBS MORNING: Heavy Volume and Epic Battles | Home | Mortgage Insurers Pressure Lenders to Repurchase Bad Loans »

How Did The Employment Report Affect Mortgage Rates?

By admin | December 4, 2009

pPosted To: a href="/consumer_rates/"Mortgage Rate Watch/a/pMortgage rates continued to march upward yesterday as fixed income investors extended profit taking strategies and set up positions for the release of Non-Farm Payrolls data today. As a reminder, when mortgage-backed securities prices move lower, lenders are forced to offer higher mortgage rates. If MBS prices move higher, lenders can offer lower mortgage rates because they can sell loans their pipeline of loans for a greater price. And now for the main event... The U.S. Department of Labor released the monthly Employment Situation Report this morning. This data provides the market with four measures on the the health of the labor market. 1. The number of jobs lost or created from the prior month. Last month showed that our economy shed 190,000 jobs. 2. The official unemployment rate , which...(a href="http://www.mortgagenewsdaily.com/consumer_rates/122384.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/122384/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=122384" width="1" height="1"

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