First quarter GDP final reading came in at 3.1 % this week. Jobless claims were up this week. The President is expected to meet with the Chinese President to discuss the trade situation. The global economy continues to slow. The Fed meets again in July and it is expected that they will drop the Fed Funds Rate at that meeting.
The bond market will be closed next Thursday for Independence Day and the jobs report comes pout next Friday.
10 YEAR BOND YIELD AND RATES
The yield on the 10 year bond is at 2.00% at noon today. That is down 06 bps from the last blog. The yield on the 3.00 % mortgage backed security is at 100.81 up .20 bps since the last blog. Rates are at good levels now.
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The Fed met this week and kept the Fed Funds Rate the same but announced they expect to lower rates later this year. This news was expected.
The global slowdown is continuing and the ECB announced they would consider more easing later in the year unless the slowdown changed directions.
Today we have a video for you from the commencement speech by All Pro Defensive Lineman J.J. Watt at the University of Wisconsin Madison this year. Some good listening.
The yield on the 10 year bond is at 2.06% at noon today. That is down 02 bps from the last blog. The yield on the 3.00 % mortgage backed security is at 100.61 down 0.06 bps since the last blog. Rates are at good levels now and were actually down right after the Fed announcement but moved back up since then.
The jobs report came out this morning and new job creation was 75,000 new jobs, well below expectations of 185,000. Unemployment stayed at 3.60 % and wage growth was at 3.1 % year over year, below expectations of 3.20 %.
Job participation rate remains unchanged at 62.8 %
10 Year Bond Yield and Mortgage Rates
The yield on the 10 year bond is at 2.08 at noon today. That is down 32 bps from the last blog. The yield on the 3.00 % mortgage backed security is at 100.67 up 26 bps for the day... With some downs and ups for the week rates are pretty much unchanged from Monday.
The jobs report came out today and there were 263,000 new jobs added which exceeded expectations. The unemployment rate was 3.6 % which indicates tightness in the jobs market. Hourly wages were up 3.2 % over the same month last year which is good but NOT INFLATIONARY. The job participation rate declined .2 % to 62.8 %. This means only 62.8 % of the people of working age are looking for work or are working.
Since wage growth is not inflationary some analysts are calling for the Fed to lower the Fed Funds rate. On Wednesday Chairman Powell said the economy indicated neither the need to increase or lower the Fed funds rate at this time.
The yield on the 10 year bond is at 2.50 %at two this afternoon. That is up 2 bps from the last blog. The yield on the 3.50 % mortgage backed security is at 101.00 down 0.4 bps from the last blog. Rates finished the week relatively flat from last week.
The GDP came in at 3.2 % beating expectations of 2.3 % lowering fears of economic slowdown. It did not affect mortgage bonds as it normally would have because consumer spending growth was not strong and inflation remained well below 2 %
The yield on the 10 year bond is at 2.50 % at noon today. That is down 6 bps from the last blog. Two weeks ago. Today the 3.50 % bond is up 20 basis points which is good for rates, to 101.04. Rates had gone up over the last 2 weeks but we have seen some improvement in the last 2 days.
The White House announced progress is being made in trade
talks with the Chinese this morning. As a result the stock market was up this morning.
HUD has sued Facebook accusing it of
housing discrimination which is prohibited by the Fair Housing Act. HUD alleges
that by allowing advertisers to steer where their properties are advertised the
information on the properties is not available to everyone. Many of these tech
companies that are dabbling in the real estate industry need to be more aware
of the laws governing the real estate industry.
YEAR BOND YIELD AND RATES
The yield on the 10 year bond is at 2.42% this morning. That
is down 2 bps from last Friday. Mortgage backed securities were down 13 bps
this morning. Rates remain good.
THIS TO YOUR FRIENDS, SUBSCRIBE FOR FREE DOWN BELOW AND IF YOU HAVE ANY
MORTGAGE OR REAL ESTATE QUESTIONS GIVE ME A CALL OR SEND ME AN EMAIL, TAKE