Mortgage Minutes

Last week, the National Association of Realtors reported pending sales increased by 3.6% in October. Factory orders defied expectations and reported a rise and last week’s closely watched non-farm payroll reported 11,000 jobs lost in November – far better than the expected 130,000 by the most optimistic economists. The results were so unexpected; it has left investors scratching their heads. In a month were initial jobless claims exceeded 2 million, it seems the dots aren’t connecting. The news sent mortgage rates higher by nearly .25% - but they continue to hover in the upper 4% range! With little economic releases on tap for this week, traders will be focused on the treasury auctions. Following last week’s positive economic news, there is some concerns that the longer termed bonds being auctioned this week will come at higher yields to draw participants. This could cause mortgage rates to rise. As the theme continues, now is not the time to straddle the fence for buying a home or refinancing.