http://MikesDailyMarketReport.com: The waiting is over for this week's big report, Non-Farm Payrolls (from the Bureau of Labor Statistics, or also referred as BLS). The Non-Farm Payrolls came in much hotter than expected to 372k in June, as forecasts were calling for 268k. Unemployment Rate remained Unchanged at 3.6%. Average Earnings rose 0.3% while Average Workweek Hours remained Unchanged at 34.5 hours. Lastly, the Wholesale Inventories rose 1.8% in May. Both Stocks and Bonds are reacting negatively to the released data today. Stocks are down because it means the Fed will most likely continue down the path aggressively to fight inflation, which in cause will slow the economy (possibly recession). For Bonds, it's 2 fold. Generally, good data is bad for bonds, as it's typically a flight to safety for investment dollars (when economy is bad, then money moves over into the Bond Market); and the path for the Fed Policy being the other. MBS is currently Down 33bps, so Mortgage Rates take another negative hit today. We lost much of the ground that was gained last week, as MBS is now breaking below it's 25 DMA. Similarly, but inversely, Yields have climbed all the way to just below 3.10% (as it touched off 2.75% earlier this week). It's touching off, just below it's 25 DMA currently.
**As Mortgage Rates spiked over 6% over past few days, ask me about our 7/6 ARM, which may be a good alternative for you or your client. Contact me today!**
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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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