Mortgage Rate "movers" today- 2/06/09

By
Real Estate Mortgage Broker MLS# 279272

The US economy lost -598K jobs in January, even worse than the consensus forecast for a loss of -500K jobs. The total losses for 2008 were revised higher to 3 million, up from 2.6 million. Adding in the January figures, the economy shed 3.6 million jobs over the past 13 months, with half of the losses taking place over the past 3 months. The Unemployment Rate jumped to 7.6% from 7.2%, to the highest level since 1992. The manufacturing and construction sectors continued to show weakness. The service sector, which held up relatively well for most of 2008, also posted large declines. Average Hourly Earnings, a proxy for wage growth, increased at a 3.9% annual rate.

Despite the weaker than expected economic data, the early reaction to the Employment report was a rally in the stock market and a decline in Mortgage-Backed Securities prices. After this report, investors feel that a large fiscal stimulus package is very likely to pass in the near future, which will benefit stocks. The added supply of debt needed to pay for the plan will be unfavorable for Mortgage-Backed Securities....and Mortgage Rates.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Mortgage / Finance
Location:
Minnesota Washington County
Groups:
LA Connection
Tags:
loan officers
mahtomedi mortgages
maplewood mortgages
minnesota
minnesota mortgages
mls
white bear lake mortgages

Comments 2 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pencil to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
946,196
Karen Fiddler, Broker/Realtor
(949)510-2395
HOM Sotheby's Intl Realty, 949-510-2395

Except that the "Stimulus" Package is going to do nothing....you watch, when it passes, and it will..the stock market is going to drop like a stone.

February 06, 2009 09:12 AM
Rainmaker
275,251
Jerry Murphy
Anthem AZ Real Estate
Long Real Estate

It's really a tough one to call hear Loren.  Yes, rising mortgage rates are not good for the real estate market, but then again, people need jobs to buy a house.  As long as rates don't increase too dramatically I think the stimulus package, if pared and altered a bit, will be good for the housing market in the long run.  Good post and best of luck.

February 06, 2009 09:15 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
31,072

Loren Johnson

CMPS
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Thoughts about Mortgages, the Real Estate market, how customers should be treated, and mabye sports!