MBS’s took a knee jerk reaction to today’s Jobs Report

December 6th, 2013

Good morning!
Interest rate trends: Today – Flat; 10 days – Higher; 25 days – Higher
Interest rate recommendation: Cautious float
MBS’s took a knee jerk reaction to today’s Jobs Report that came out just slightly better than expectations, but didn’t surprise the markets. Initially MBS’s took a dive worse but since have come back and are currently slightly better at +18bps. Consumer Sentiment also came in higher than expected. The numbers are good for the economy, but they aren’t surprising and are not causing a big reaction. Although the Stock markets like it. Regarding QE3, this gives the Fed more confidence that the labor market appears to becoming more solid, but 2 months we don’t think will cause the Fed to announce any tapering plans at their next meeting December 18th. In fact we feel that if the labor market continues this same pattern, tapering will likely be announced in March 2014, after 5 months of good employment figures and during the new Fed Chairman Janet Yellen’s first statement after their FOMC meeting. While MBS’s try to improve, and with the Jobs Report behind us, we will change to a cautious float recommendation. Have a great day and nice weekend!
This email is sent out once per day, but on our website, on the “Interest Rates” page, you will see a “Current rate trend” indicator to see what interest rates are doing throughout the day.
30 year fixed rate: 4.250% with 4.302% APR.
20 year fixed rate: 4.125% with 4.212% APR.
15 year fixed rate: 3.250% with 3.322% APR.
10 year fixed rate: 3.125% with 3.309% APR.
Use the link below to see all our posted interest rates:
Please visit http://www.GreatAmericanLending.US for further information and/or to apply.
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Have a great day and thank you for choosing Great American Lending.
Thank you.
Dale Packer, MBA
Spencer Packer – Colorado & Utah