Rate Update December 7, 2009
Overall pricing on mortgage rates is improved this morning. If you’ll recall Friday’s jobs report provided the proverbial “cherry on top” to a week which saw mortgage rates increase by approximately .25%.
Speaking of last weeks jobs report, over the weekend there was growing sentiment amongst analysts that the Fed will move to raise rates sooner than anticipated because of the surprisingly strong report. However, it is my belief that the Fed will not jump to any conclusions. This report may well be a statistical outlier. There is no arguing however that there will be especially close attention paid to the December’s jobs report which will be released on January 8th.
The economic calendar this week is not as heavy as it was last week. Most of the significant economic data will come towards the end of the week. In the meantime we’ll pay close attention to the US Treasury’s bond auctions which will conclude Thursday with $13 billion in 30-year bonds as well as the stock market & US dollar.
For now it appears that rates have stabilized so we’ll maintain a neutral position.
Current outlook: neutral