Rates
Rates continue their upward momentum, as more economic news comes out that the US economy is growing at a nice pace right now.
This week we say rates erode another .125% not counting today.
Previous to today:
May Construction Spending up .5%
June ISM Manufacturing up to a 50.9
May Factory orders up 2.1%, April Revised from +1.0% to 1.3%
Auto sales, way up.
June ADP employment report expected 165K private sector jobs jumped to 188,000
So all week the bonds were under pressure to increase even more than they did, but the traders held off until Friday’s Unemployment reports.
Unemployment report.
All we can say is WOW, although unemployment didn’t change, still stuck at 7.6%, the numbers came in higher, and previous months were also adjusted.
Estimate 165,000 jobs, actual 195,000
May’s numbers adjusted from 175,000 up to 195,000
April also adjusted up another 50,000
This caused traders to sell, and sell and sell bonds, right now we have one of the largest 1 day bond sell off in history.
Rates are on a rocket ride again today, and lenders have shut them off for the most part until it settles down.
Remember, red = bad green= good, and there hasn't been much green lately.
There is some concern in the markets that the Fed’s tone is causing rates to increase too fast which might slow growth in the housing market. I wouldn’t be surprise if the Fed comes out with some sort of statement to calm the bond market somewhat.
As stated in previous email, lock them as soon as you can, in our humble opinion.
Not much in other news regarding lending, still waiting for them to hopefully extend RD in Kuna past the 9/30/13 deadline.