Economic News…Bond markets got a big jolt this morning with the release of the Employment Situation report. The stronger than expected report revealed that 257,000 non-farm payroll jobs were created in January and both November and December numbers were revised sharply higher as well. In addition to this there was a big uptick in average hourly earnings. While this is good news for workers and the economy money in bonds headed for the door. Factory Orders and the ISM Manufacturing data were much less positive. The manufacturing sector is facing continuing headwinds due to weaker overseas demand and a large spending contraction from companies in the oil and gas sector. The continued strength of the US Dollar versus other currencies is also a contributing factor.
Not much on the economic calendar next week but keep an eye out for developments between Greece and the European Union as to how they will proceed with their fiscal troubles and conflicting interests.
Mortgage Markets…the bond markets got hammered by the surprise strength in this morning’s Employment Report. The 10 Year Note is currently trading at 1.945% which is substantially higher than last week’s closing yield of 1.662%.
Next Week’s Market Moving Reports…Tuesday: JOLTS Wednesday: Treasury Budget Thursday: Jobless Claims, Retail Sales Friday: Consumer Sentiment
While I do not originate mortgages, I make it a habit to keep abreast of market & home loan conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.