Rates On the Rise
There was a large increase in the pricing of Mortgage Backed Securities (MBS) this morning.
This is (in part) due to mixed news about unemployment:
The economy only added 148k of the forcasted 180k jobs last month. Though unemployment did drop from 7.3% to 7.2% it is a weaker recovery than expected.
Thoughts: These unemoloyment results are based on the last reading before the government shutdown and we have yet to see the full impact of the slowdown in Washington. Hopefully we will see a continued reporting increase in the Average Hourly Earnings (a proxy for wage growth) in future days.
