September 2nd, 2016
What Is Going On With Interest Rates? #wigowir
When the price of Mortgage Backed Securities (MBS) on the Chart above goes down rates go up, and when the price goes up rates come down. Chart was posted at 11:01 am. All times are Eastern Standard. Currently Mortgage backed securities are trading at $103.62 down 3 basis points from yesterday’s close, and below the 50 and 25 day moving average. The long wicks on the candle shows that the trading has been volatile today. Currently we are pretty much the same as we were at the close yesterday.
Commentary 11:01 am: The following is the Employment Report for August that was released this morning at 8:30 am ET.
Report Estimate Actual Prior
Non-Farm Payrolls 180,000 151,000 255,000
Hourly Earnings 0.2% 0.1% 0.3%
Unemployment rate 4.8% 4.9% 4.9%
Average work week 34.5 34.3 34.5
Labor Force Participation 62.8% http://www.cnsnews.com/news/article/susan-jones/94391000-not-labor-force-labor-force-participation-stuck-628
The labor force participation rate is the percentage of people in the civilian noninstitutionalized population, age 16 or older, who are either working or actively seeking work. People who are no longer looking for work, for whatever reason -- retirement, school, family, or they've just given up -- are not participating in the labor force.
Feel free to call (205-266-5669) or email (email@example.com) John for a quote based on the terms of you loan.
8:34 AM ET New Rates have been posted
30-Year Fixed 3.375% (3.457% APR) No Origination Fee
15-Year Fixed 2.750% (2.892% APR) No Origination Fee
7-1 ARM 30 year 3.000% (3.341% APR) No Origination Fee
For more rates and details click: http://www.johnmarbury.com/page5.html/
Below is the news when it happened and the market’s reaction. All Times are Eastern Standard Time.
8:44 AM - Fed Fund Futures now show just a 12% probability to a hike in the Fed Funds Rate at this month's FOMC meeting. S&P futures edge into positive territory as interest rate hike chances ease.
Fri, Sep 02 8:39 AM - Average hourly earnings +0.1% vs the 0.2% expected.
The Unemployment Rate remains at 4.9%.
MBS edge higher after the weaker-than-expected jobs data, but the gains are modest.
June and July saw a net revision of -1K for Non-farm Payrolls.
August Non=farm Payrolls 151K vs the 180K expected.
8:15 AM - U.S. dollar index 95.69, +0.03.
The 10-yr T Note yield at 1.58%.
WTI oil $43.59/barrel, +$0.44.
It is expected that 180K jobs were created in August.
MBS open near unchanged while S&P futures hover near the flat line ahead of the 8:30 a.m. release of the August Jobs Report.