After a whirl wind holiday of travel to the bitterly cold state of Vermont, I am back in work mode in Boulder. News in the mortgage market is as choppy as ever.
In breaking news, the market has reacted positively to Fed's program purchasing Mortgage backed securities (MBS), which reduces supply, thus boosting prices and lowering yields. Details of how much they are buying will be released weekly.
Currently Dow Futures are down, European markets are relatively unchanged, oil is slightly lower along with Gold. We should see higher volume of trades today as most investors will be back at work, but it is much to early to give a opinion on the movement or direction.
Last week yields on Fannie Mae, Freddie Mac and Ginnie Mae securities declined to record lows but the spreads lenders charge are also at record highs! What is up with that? Stay tuned.
The upcoming week is full with economic reports, with the biggest impacting reports coming on Friday.
Monday
- Construction spending came in at -.6% vs expectations of -1.2%.
Tuesday
- Factory Orders, economists expecting a -2.6% drop after last months -5.1%.
- Pending Home Sales Index, which is expected to show a slight decline from last month.
- ISM Services Index, economist expecting a 37.0 after last months 37.3.
- FOMC Minutes, this is the minutes of the last Fed meeting.
Thursday
- Jobless claims, economists expecting 550k, after last weeks 492k
Friday
- Unemployment rate, economists expecting 7.0% after last months 6.7%
- Nonfarm Payrolls, economists expecting -475k, after last months -533k
If you have any questions or topics that you are interested in please let me know, I am happy to help with your education.
Please forward this info along to your clients, family, friends, and coworkers, as education is important for everyone.
I hope you enjoy the rest of your day, stay warm, and have great first week of the new year.
Cheers,
Ian R Bennett
Mortgage Banker
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