Purchase | Refi     512-710-1400

GET STARTED

APPLY NOW (CLICK HERE)

PREQUAL LETTER

LETTER REQUESTS (CLICK HERE)

Employment Report

With the consensus call for job losses of 50K, a number of economists are talking about 100K in losses with John Ryding, chief economist at RDQ Economics, calling for losses of 250K

Speaking of unemployment, Friday’s number could be as weird as it gets. With the consensus call for job losses of 50K, a number of economists are talking about 100K in losses with John Ryding, chief economist at RDQ Economics, calling for losses of 250K. Blame it on the weather. With spreads so wide you could drive a truck through them, Friday’s print will be one volatile ride.

If our bias is correct, you should see mortgage pricing hold steady to improve, watching to see if stocks can find their sea legs

We do feel that any selling will be shallow as the global doom and gloom will be with us for some time to come. Stocks would benefit and maybe just in time to save that market from a much bigger correction. If our bias is correct, you should see mortgage pricing hold steady to improve, watching to see if stocks can find their sea legs.

The week ahead will be loaded with first tier data including everything from Construction Spending, Housing numbers, and the Employment Report for January

The lack of month end buying and rebounding stocks has pinched treasury and mortgage pricing this morning. 10 year notes are off 12/32’s (yield 3.65%), mortgage backs off 6/32’s, and stocks are up 85 on the big board. The week ahead will be loaded with first tier data including everything from Construction Spending, Housing numbers, and the Employment Report for January.

The U.S. economy lost 85K jobs in December, bringing the total to 7.6 million since the recession started in December 2007

The U.S. economy lost 85K jobs in December, bringing the total to 7.6 million since the recession started in December 2007. Back month revisions also come into play as October job losses increased 16K while November’s posting improved by 15k. The November number now stands at plus 4K, the first positive employment growth two years.

Employment Data Surprises

After several weeks of strong performance, it was a tough week for mortgage markets. Stronger than expected economic data and an improved economic outlook from the Fed increased concerns about future inflationary pressures. Rising inflation expectations result in higher yields, and mortgage rates increased during the week.

Mortgage pricing is trying to work its way back from the lows of the early morning trade

Mortgage pricing is trying to work its way back from the lows of the early morning trade. We are not out of the woods yet, although I wouldn’t expect this trade session today to be very volatile facing tomorrow morning’s Employment report. From what we are seeing, the estimates are anywhere’s from 100k to 130k job losses vs the 190k number from the previous report. I am leaning more towards the -110k mark at this point. Expectations are for the unemployment rate to stay at the 10.2% previous month number, as well as avg hourly earnings and avg work week numbers to stay the same as well.

Record Auctions Produce Mixed Results

While daily volatility was high this week, Austin mortgage rates ended just slightly lower than last week. The primary factors influencing Austin mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.