 Market Update for Wednesday 02-01-2012Wednesday, February 1, 2012 - Article by: Crestico Funding -
At 815am ADP reported its Private Jobs data for January; forecasts were for an increase of 200K jobs, as reported +170K. ADP revised December job growth from 325K to 292K. Prior to the report the 10-Year Note traded lower by 8/32 and the reaction to the weaker report was briefly back to unchanged but by 900am was down by -6/32 with MBS prices at 900am down -1/32 (.03 bp). U.S. equity market trading prior to the open at 930am had indexes trading higher in line with better markets in Europe. On Friday the BLS report is forecast to show the U.S. added 145,000 jobs, according to 81 economists in a separate survey, compared with 200,000 the previous month. The unemployment rate is forecast to remain steady 8.5%. China reported an unexpected increase in manufacturing today which spurred rallies in Europe's markets. Borrowing costs in Italy fell slightly on sales to the lowest since October as stock gains spurred demand for riskier assets. Portugal's notes rose as borrowing costs declined at bill sales. The German 10-Year yield rose two basis points, or 0.02 percentage point, to 1.81% at 152 p.m. London time after falling to 1.78% yesterday, the lowest since January 18, and the same yield as US 10-Year Notes. Weekly MBA mortgage Applications for last week will be out at 700am today. mortgage applications decreased 2.9% from one week earlier, for the week ending January 27, 2012. The refinance Index decreased 3.6% from the previous week. The seasonally adjusted Purchase Index decreased 1.7% from one week earlier. The four-week moving average for the seasonally adjusted Market Index is up 4.11%. The four-week moving average is up 2.48% for the seasonally adjusted Purchase Index, while this average is up 4.22 % for the refinance Index. The refinance share of mortgage activity decreased to 80.0% of total applications from 81.3% the previous week. The average contract rate for 30-Year Fixed mortgages with conforming loan balances ($417,500 or less) decreased to 4.09% from 4.11%, with points decreasing to 0.41 from 0.47 (including the origination fee) for 80% loans. The average contract interest rate for 30-Year Fixed mortgages with jumbo loan balances (greater than $417,500) decreased to 4.33% from 4.39%, with points increasing to 0.41 from 0.40 (including the origination fee) for 80% loans. This is the lowest 30-Year jumbo rate since MBA started tracking the series in January 2011. The average contract interest rate for 30-Year Fixed mortgages backed by the FHA decreased to 3.96% from 3.97%, with points increasing to 0.61 from 0.57 (including the origination fee) for 80% loans. The average contract interest rate for 15-Year Fixed mortgages decreased to 3.36% from 3.40%, with points increasing to 0.41 from 0.40 (including the origination fee) for 80% loans. The average contract interest rate for 5/1 ARMs increased to 2.94% from 2.91%, with points decreasing to 0.39 from 0.41 (including the origination fee) for 80% loans. |
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