No change to rates as markets continue to operate in the dark

Markets continue to operate in the dark with lack of data due to government shutdown

Happy Friday from Local Mortgage!

Two flat days, two good days and one bad day this week. More movement than we have seen in week’s past but ultimately, we will end the week right back where we started, still at 5.875% for our very best 30 year fixed conventional scenario.

The week started with a little bit of positive movement as Tuesday’s stock selloff helped boost bond purchases, giving the MBS market a bit of a bump to start the week. Wednesday brought most of this week’s economic data with the ADP employment and ISM Services reports. Neither were particularly friendly for bonds as both reports beat expectations, however the labor data from both weren’t exactly strong. More weak labor market data hit the news cycle Thursday as a private company released their version of the non-farm payroll report which showed that layoffs increased by 183% in October. In the absence of government data due to the shutdown, information from private companies has become more influential to the markets.

Next week will be a short week with markets closed on Tuesday for Veterans Day. If released on schedule, we could get CPI data on Thursday but otherwise, it will be more of the same as markets will continue to operate, still somewhat in the dark.

Hope everyone has a great weekend, thank you for reading.