Market Rates Update

Dated: 10/04/2015

Views: 266

 

MARKET RATES

Mortgage Rate Movement

MOMENTS IN HISTORY

September 28, 2008 – California-based SpaceX launches the first private spacecraft, the Falcon 1, into orbit.
September 29, 1988 – Stacy Allison of Portland, Oregon, becomes the first American woman to reach the summit of Mount Everest.
September 30, 1939 – NBC broadcasts the first televised American football game between the Waynesburg Yellow Jackets and the Fordham Rams. Fordham won the game 34–7.
September 30, 1954 – The U.S. Navy submarine USS Nautilus is commissioned as the world's first nuclear reactor powered vessel.
October 1, 1908 – Ford puts the Model T car on the market at a price of $825.
October 1, 1982 – Sony launches the first consumer compact disc player.
October 2, 1957 – Best Picture winner,The Bridge on the River Kwai, starring William Holden and Alec Guinness is released.
October 3, 1895 – Author Stephen Crane's The Red Badge of Courage is published.

Source: DatesInHistory.com, HistoryOrb.com, Wikipedia.org, History.com, & On-This-Day.com

 
 

THE WEEK IN REVIEW

On Friday, non-farm payrolls only increased by +142k, 59k below expectations. More importantly, we saw big negative revisions to both August and July, that of 59k fewer jobs. The unemployment rate held steady at 5.1%, thanks to 350k people leaving the labor force, including 236k who were employed and 114k who were unemployed. This now drives the participation rate to a new low since 1971 of 62.4%. Average hourly earnings were unchanged for the month, below expectations of a +.2% increase. The average work week also fell from 34.6hrs to 34.5hrs. 

Overall, the report this morning was very weak and disappointing at best. It also suggests that October will be very unlikely for a Fed rate hike and December only possible if the data were to reverse. Treasury yields plunged in response to the report, while stock futures went deep into the red. The 10yr Treasury has now broken through recent resistance levels pushing the yield down from 2.05% (pre-report) to now ~1.92%. For the week ahead, we think it's a good possibility for the path to better rates and pricing to continue.

UPCOMING MARKET DATA

October 5 – PMI Services Index
October 5 – ISM Non-Mfg Index
October 6 – International Trade
October 7 – MBA Mortgage Applications
October 7 – Gallup U.S. Job Creation Index
October 7 – Consumer Credit
October 8 – Jobless Claims
October 8 – Bloomberg Consumer Comfort Index
October 8 – FOMC Minutes
October 9 – Import and Export Prices
October 9 – Wholesale Trade
 

CALL TODAY TO DISCUSS THIS WEEK'S MARKET TRENDS.


Jason Kaiman
Production Manager
Direct: 515.418.9608     Mobile: 515.205.5244 
jkaiman@primelending.com
lo.primelending.com/jkaiman
NMLS: 406027

PrimeLending

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