Health & Fitness
Mortgage Minute 3-7-13 "Jobless Claims Down, Rates Up"
Another good day for stocks as the S&P gets closer to it's all time high, causing home loan rates to jump a bit higher.
The Mortgage Backed Securities market closed down pretty big today down 39 basis points. Between the European Central Bank (AKA the ECB) deciding that they would keep their rates where they are and not lower them to try to intentionally weaken the Euro (which could have led to a bit of inflation here in the US). And then the ADP Initial Jobless Claims report coming in 7,000 better than expected. This was all good news for stock market investors as they are signs of continued market prosperity. In fact all three of the major stock indices's closed in positive territory with the S&P 500 closing just 21 basis points below it's all time high. That is what forced mortgage bond investment down with the Fed not stepping in today to help bail it out a bit.
However as they say "tomorrow is a new day", and tomorrow is the big monthly New Jobs report. The market will be looking for 175,000 to 200,000 new jobs having been created. If the report comes in under that mark by for than a few thousand, that could give investors a reason to pull back on the reigns a bit in the stock buying spree and move their money over to mortgage bonds that should be pretty attractive at their current levels. Watch the video above to see where home loan rates finished on the day.
If you would like to talk about your specific scenario or needs, please do not hesitate to call or email me directly.
Find out what's happening in Santeefor free with the latest updates from Patch.
This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths. Licensed by the Dept. of Corporations under the CA Res. Mtg. Lending Act – 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.
Rob McNelis
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
www.robmcnelis.com
