12/02/2024
As we get back to the norm of working after a long holiday weekend and for many a long holiday week. We have some things to be thankful for.
If comparing rates from last Monday open to Friday close, we were up between 30 - 75 BPS depending on product and where you are on the rate sheet. That is $300 - $750 better pricing for the same rate per 100K in loan size from last week.
In addition, as a result the 10-year note ended the week down a huge 18 points to 4.17.
Unfortunately, as the markets get back into the groove of things this morning the bond market is down 20+ BPS this morning, so we lost some of the gains from last week. Although, we are still above where we were last Monday which is a good thing.
The markets are forward thinking and preparing for all of the labor reports to come out is likely one of the reasons we are down a bit this morning. In addition, we are hitting a little bit of a ceiling. We went 7 business days in a row with better rates and from a technical trading perspective it is a good time to sell some of the bonds that investors have been waiting to sell. Similar to when a stock gets to a certain level, people will sell. Same goes for bonds.
This week we have quite a Bit of jobs reports with JOLTS (Job Openings & Labor Turnover Survey) coming out tomorrow morning. ADP is Wednesday, Jobless Claims Thursday and Payrolls, Unemployment and updated hourly earnings coming out Friday.
In addition, we have some manufacturing news today and Wednesday which are indicators of how the manufacturing sector is doing in new orders, jobs etc. This week is about what we're producing, how many are producing it and what they are getting paid to do so. The labor market is a big indicator of whether investors will flock to stocks or find a safe haven in our mortgage bonds.
Cass Sheridan, NMLS # 1617428 - Mortgage Advisor
