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

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Mortgage and Lending 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.

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Topic:
Mortgage / Finance
Location:
Minnesota Washington County
Groups:
LA Connection
Tags:
loan officers
mahtomedi mortgages
maplewood mortgages
minnesota
minnesota mortgages
mls
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Ambassador
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Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (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.

Feb 06, 2009 09:12 AM #1
Rainmaker
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Jerry Murphy
Long Real Estate - Anthem, AZ
Anthem AZ 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.

Feb 06, 2009 09:15 AM #2
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Rainer
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Loren Johnson

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