Do you know what will happen to interest rates today?

I am starting today by floating my interest rate locks; however, after the strong rally in the past few days the bellwether 10 yr note and MBSs both have found some resistance at key MAs. Set your Alert Controller and keep tuned for our static quotes through the day.

Early this morning the 10 yr and mortgage started slightly weaker after two strong days of price gains; the 10 yr at 8:00 -3/32, mtgs at 8:15 -2/32. Data at 8:30 however, sent prices down and yields higher. At 9:00 the 10 yr -15/32, mtgs -7/32 and the DJIA futures +80. At 9:30 the DJIA opened +60, 10 yr note -11/32 and mortgage prices at 9:30 -3/32.

If you are a Phoenix Homebuyer and need a low interest rate loan, get started here

Weekly jobless claims at 8:30 were down 1K to 530K, not as much of a decline as expected (-5K). Continuing claims did decline 178K to 5.797 mil frm 5.94 mil last week; markets saw that as a significant improvement in the jobs outlook but that is way off base thinking. Declining continuing claims would normally be a positive for the employment outlook if this were a normal recession.This is NOT good news of interest rates.

Also at 8:30 the first look at Q3 GDP; better than expected, +3.5% frm -0.7% in Q2. Market consensus was for +3.2%. It is history however, we are well into Q4. Nevertheless the better growth triggered buying in the stock index futures and drove the stock market to a better open at 9:30. Along with the decline in continuing claims and after the 330 decline in the DJIA in the past four sessions investors look to be “bargain” hunting to start the session. Equities are also getting help from the dollar, weaker this morning. If not for the dollar plunge the equity market would have very little support; a high percentage of the recent rally in stocks is coming from foreign investors taking advantage of the falling buck.

Let today’s low interest rates help make your new home purchase affordable.

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