September 3, 2010
September 3, 2010 by admin
For the second time this week, the stock market has jumped over 100 points in trading. Friday’s market surge is being driven by a better than expected report on the employment front as the non farms payroll report was released early Friday morning. While the numbers from the report show mixed signals of the employment recovery, the market seems focused on the 60,000 private sector jobs added last month and not on the increasing unemployment rate, now up to 9.6%. The improved non farm payroll report could help to push the market higher for the month of September and reverse some of the losses the market realized in August.
The good news for the labor front is not welcome news to consumers shopping for a home mortgage. The jump in equities is pulling investors out of the bond markets. Yields on the closely followed ten year treasury have jumped back above 2.7%, moving up over twenty basis points this week. The upward move in yields has pushed fixed rate mortgage loans for thirty year loan terms back into the 4.5% range (still great) but off of their historical lows of 4.32% from just two weeks ago. September mortgage rates have been moving higher as the stock market has jumped by almost 400 points this week. There is still a number of key reports that could shift the market due out in the coming weeks, but the present trend favors rates to move higher and borrowers may want to explore their rate locking options.
