Jeds Financial Update 11.8.13 Market News A rough ending to the week for rates as the 10 year bond jumped 15 basis points to its highest level since mid September and mortgage rates moved back up to 4.375%. So Whats Happening? Since Wednesday morning we had seen slow but steady improvement in rates as the 10 year bond dropped from Tuesdays close of 2.67% down to a low of 2.59% at Thursdays close and mortgage rates had drifted back to 4.25%. Thursdays GDP report for the third quarter was stronger than expected and above the top of the consensus range. That should be bad for rates but most all of the gain was from an increase in inventories not increased demand. Overall demand remains sluggish, import growth has decelerated and exports continued to grow but at a much slower pace than expected, down from 8% in the second quarter to 4.5%. Thursdays Jobless Claims were expected to be at 335,000 and came in on target at 336,000. However, last weeks numbers were revised upward from 340,000 to 345,000 and there were no real extenuating factors for the first time in two months. All that said, initial jobless claims have fallen from 373,000 in early October into the 330,000 range this week and thats bad for rates. Fridays Employment Situation report reported huge increases on the non-farm job front. Septembers numbers were revised upward from 148,000 to 163,000 and October which was expected to be 120,000, came in at a whopping 204,000. Numbers that strong will move interest rates and these numbers did. Consumer Sentiment is continuing to fall as the expected reading of 75.0, instead came in at the very bottom of the consensus rage at 72.0. The fall in the sentiment readings are across the board as the current conditions have dropped from their recent high of 99.7 to 87.2 and the future expectations are down from their peak of 76.5 to a miserable 62.3. In other words, consumers are pessimistic about jobs and income - why? Washingtons ineptness. What To Expect Monday, the market is closed for Veterans Day and there are no real reports until Thursday. Normally wed expect to see some hedging (slight increase in rates) for the 3 day weekend but given the 15 basis point increase already today, it would be surprising to see any more. Unfortunately todays news set the markets in a bearish mood. Rates will be more likely to increase than decrease until Thursday and then it will depend on what Thursdays reports hold. Lock now Apply at CallJedMarquis Record Setting Year? According to William Callahan of the Boulder Daily Camera, 2013 may break a number of weather records for Boulder, in addition to all the records set by the September rains. To put some more perspective on the September rains, if we combined the totals for the wettest September (5.50 inched in 1940), the wettest October (6.04 inches in 1942) and the wettest November (3.68 inches in 1946) in history, it would equal 15.22 inches. September 2013 accounted for 18.16 inches alone, almost 3 inches more. The snowiest year on record was 1997 with 158.7 inches of snow. So far in 2013 weve had 110.3 inches with April accounting for over four feet. We need 48.5 inches by year end to move from our current 9th snowiest to the snowiest. Our average snowfall in November and December is 29.1 which would make 2013 the second snowiest. Our snowiest November was 46.7 inches in 1947 and our snowiest December was 52.5 inches in 1913. Will we break the record? One other piece; October (not September with the floods but October) was the 27th wettest and the 11th coldest in history. Have a great weekend. If you have any questions regarding the market news for today please feel free to contact me. Sincerely, Jed Marquis Cell 303 885-1532 Direct 303 493-0517 JedM@libertyhomeloans Regulated by the Division of Real Estate Interest Rate and Economic News for Realtors and Homebuyers 30 Year Fixed RATE: 4.375% APR: 4.433% 15 Year Fixed RATE: 3.375% APR: 3.623% FHA 30 Year Fixed RATE: Not Avaiable APR: System down Todays Rates The rates quoted in this news letter are based off the following assumptions: Purchase Price : $400,000 Down Payment: 25% Loan Amount: $300,000 Credit Score: 740 Taxes & Insurance Escrowed **All rates are subject to change without notice. FHA based on 96.5% LTV Theres More to a Mortgage than the Payment Jed M NMLS # 274457 CO # LMB100018640 Liberty Home Loans 287 Century Cir. Ste 201 Louisville, CO 80027 720-890-8900 libertyhomeloans NMLS # 324250 Equal housing
Posted on: Fri, 08 Nov 2013 21:34:55 +0000
Trending Topics
Recently Viewed Topics
© 2015