Wednesday, January 6, 2021

Daily Market Report 1/6/21 The ADP reported a decline of 123k jobs in the Private Sector for the month of December.  This is the first decline since the lockdowns began in March.  However, Factory Orders rose by 1.0% in November.  Stocks are Up this morning on news that there may be a Blue Sweep in the Georgia Runoffs.  Results are not yet final, but it's appearing that there may be a sweep.  The Uncertainty kept Stocks at bay for the past 2 months.  MBS is way down today; Down 31bps (dropping below it's 25- and 50 DMA and approaching it's 100 DMA).  Yields broke the Technical Ceiling and have risen above 1.0% since last March's lockdowns.  What does this all mean for Mortgage Rates?  They have gone up!!!  This is due to a one party control, which will be able to pass their legislation without any checks and balances.  This means that more debt (bonds and MBS) will be issued (supply/demand) to pay for their spending and printing of money, which will lessen the value of the dollar and raise inflation (enemy to bonds/MBS, as it erodes their value over time).

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Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

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