8/05/16 255K new jobs created in July vs the 185K expected

8/05/16 255K new jobs created in July vs the 185K expected

August 5th, 2016

What is Going on with Interest Rates? #wigowir

3:37 pm et New Rates have been posted

30-Year Fixed 3.375%  (3.457% APR) No Origination Fee  

 
  • 30-Year Fixed-Rate Mortgage: The monthly payment on a $200,000 30-year Fixed-Rate Loan at 3.375% and 70% loan-to-value (LTV) is $884.19 with 0 points due at closing. The Annual ercentage Rate (APR) is 3.457%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply.

 

For more rates and details click: http://www.johnmarbury.com/page5.html/

The strong Jobs Report pushed MBS lower and continued to drift into negative territory as the S&P and the Nasdaq closed at record highs. The Labor Department reported that U.S. employers added 255K jobs in July vs the 185K expected. The 3% Fannie Mae 30-yr coupon closed at 103.66, -31bp. The Dow gained 191.48 points to 18,543.53. The S&P finished at 2,182.87, +18.62 points while the Nasdaq gained 53.85 points to end the week at 5,220.10, both closing record highs. WTI oil was last seen at $41.89/barrel, near unchanged. 10-yr T Note yield 1.58%. Next week's economic calendar is on the light side, but we will see readings on wholesale inflation, Consumer Sentiment and Retail Sales. Have a great weekend!

Below is the news when it happened and market reaction

 2:00 PM - MBS underwater. 10-yr yield 1.57%. WTI oil $41.56/barrel, -$0.37. Dow +165 points.

1:19 PM- Just past midday, MBS in negative territory. Stocks in rally mode after the strong Jobs Report numbers.

10:06 AM - MBS drifting lower as Stock gains accelerate.

 


Chart 160805 10189:01 am - The chart below shows we are down 25 basis points, and we are now below the 25 day moving average which is currently $103.78.  Keep in mind when the price goes down mortgage rates go up.

8:47 AM - The Labor Force Participation Rate rose to 62.8 from 62.7 and is a measure of the active portion of an economy's labor force. It refers to the number of people who are either employed or are actively looking for work.

 8:44 AM - The U-6 number or the total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force rose to 9.7% from 9.6%.

 8:40 AM - S&P futures add to gains after the jobs data.

 8:37 AM - MBS take a slight hit.

 8:37 AM - The dollar index surges by 0.41 to 96.12 as investors feel the strong jobs number could usher in a rate hike sooner rather than later.

 8:34 AM - May and June payrolls revised higher by total of 18K.

8:33 AM - Unemployment Rate 4.9%, inline.

8:32 AM - 255K new jobs created in July vs the 185K expected.

 8:32 AM - Average hourly earnings +0.3% vs the 0.2% expected.

 8:17 AM - U.S. dollar index 95.51, -0.20.

 8:15 AM - WTI oil $41.90/barrel, unchanged.

 8:14 AM - 10-yr T Note yield 1.49%.

 8:10 AM - Ahead of the jobs data, Fed Fund Futures show just an 11% chance of a hike to the Fed Funds Rate, a 32% chance by December.

 8:01 AM - The Federal Reserve's move to raise the benchmark Fed Funds Rate is contingent upon a number of economic indicators, including a strong labor market and inflation meeting the central bank's 2% goal.

 8:00 AM - The first half of 2016 saw an average monthly addition of 171,500 new jobs per month.

 7:58 AM - S&P futures modestly higher.

 7:57 AM - MBS look to open near unchanged ahead of the data.

 7:55 AM - Investors eagerly await the 8:30 a.m. release of July Non-farm Payrolls where it is expected that U.S. employers added 185K new workers.

Contact

John Marbury
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