From the Desk of Bob Klorer:
The surprising employment report sent the equity markets into an immediate rally mode yesterday morning with mortgage rates increasing with the data.
By days end…the equity markets gave up most of its gains and the bond market stabilized around a very key support level of 3.50% for the 10 year note.
Was yesterday’s jobs report an anomaly or a sign of things to come? If we start getting further indicators that the employment picture is improving we could see the FED start to take action much more quickly in terms of needing to raise rates even though inflation still seems not to be an issue!
Even with the volatile trading activity for the week 30 year fixed rates continue to average between 4.875 and 5.00% with no points.
Have a great weekend!
We will break down the employment report this coming week.
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