January 4, 2019

Market News

Yesterday was the best lock day of the year as many borrowers took advantage to lock in the lowest rates in months.  Yes… yesterday was only the second business day of the year, but it was extremely busy even with many borrowers still out on winter break.  This morning the bond market is down after the jobs report blew the roof off expectations.  But rates are still looking awesome.

Stocks are up big in the early morning shuffle after a violent selloff in yesterday’s exchange.  December’s Nonfarm Payrolls reading blew expectations out of the water today, bolstering optimism/sentiment on the street.  The positive surprise has been heralded as a breath of fresh air amidst a slew of U.S. economic indicators that have been blasé at best as of late.  The S&P500 is currently trading at 2,516.16, 2.79% higher.

Treasuries are trading sharply lower to begin Friday’s exchange, garnering downside pressure from a robust Nonfarm Payrolls report.  The U.S. economy added 312K jobs in the month of December versus expectations of a 184K increase.  On top of this, November’s original reading was revised higher by 21K, to 176K.  The unemployment rate ticked up to 3.9%, from 3.7%; however, this notion has been attributed to an increase in labor force participation.  Additionally, average hourly earnings both MoM and YoY trounced expectations, coming in at a 0.4%, and 3.2% increase respectively.  The U.S. 10-Yr Note gave up all of yesterday’s gains and then some, and is currently trading at 2.6411%, 0.0877 higher.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage