8/4/2019 Greenpath's Weekly Mortgage Newsletter - 10/2/2011

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Week of

Oct. 2,2011

MortgageMarket

Commentary

Long-term mortgage rates moved slightly downward last week. Operation Twist is partially designed

to lower longer-term interest rates. However, the program will be rolled out over the coming months

with more potential impact as the program gets rolling. Additionally, hope is growing for a workablesolution in Europe as they struggle with how to deal with their debt crisis. On this side of the Atlantic

GDP was adjusted slightly higher, and we saw a drop in weekly jobless claims.

This week could see mortgage rates moving upward slowly, if economic data points toward even a

slight improvement in the economy. The biggest reports due this week are the ISM Manufacturing

Index and the monthly Employment Report. If the ISM manages to stay above the 50.0 mark, which

indicates that manufacturing is expanding, then rates may begin the week on an upward trend. If the

week ends with even moderately good news for the employment market, then an upward trend from

this week could extend into next week. Of course, bad economic news could push rates lower.

MortgageRa

tes

2.75%

3.25%

3.75%

4.25%

4.75%

7/14 7/28 8/11 8/25 9/8 9/22

30Yr 15Yr 1Yr ARM

DowJ

ones

10,500.00

11,000.00

11,500.00

12,000.00

12,500.00

8 -Ju l 2 2- Ju l 5 -A ug 1 9- Au g 2 -S ep 1 6- Se p 3 0- S

This Weeks Top Economic Reports and Events

Interest Rates and IndexesMortgage RateTrends 1 Yr T-Bill 0.100% 11th D. COFI 1.350%

Short-Term 10 Yr T-Note 1.870% COSI 2.120%Long-Term 6 Month Libor 0.558% CODI 0.263%

Volatility High Prime Rate 3.250% MTA 0.231%

HistoricalRates

0.00

3.00

6.00

9.00

Sep-06 Sep-07 Sep-08 Sep-09 Sep-10

1 Yr CMT MTA COFICODI Prime

10 Year Treasury Note Trend

1.50

2.00

2.50

3.00

8-Jul 22-Jul 5-Aug 19-Aug 2-Sep 16-Sep 30-Sep

10 Year Treasury Note 20 Day Moving Ave

T o R e c e i v e T h i s N e w s l e t t e r

f r o m y o u r H o m e M o r t g a g e

C o n s u l t a n t , P l e a s e C o n t a c t

T h e m D i r e c t l y

26800 Aliso Viejo Pkwy, Suite 100, Aliso Viejo, CA 92656

Report/Event Date Prior Est. Impact

ISM Manufacturing Index 10/3 50.6 50.5 Significant

If this respected index unexpectedly drops below 50.0, then mortgage

rates are almost certain to start moving lower as the week begins.

ISM Services Index 10/5 53.3 53.0 Moderate

With expectations for a slight dip in both ISM indices, if both make a

stronger showing than anticipated, rates could push upward.

Unemployment Rate 10/7 9.1% 9.1% Significant

Some economists are expecting an increase in unemployment. If this

holds true then rates will feel some downward pressure.

Nonfarm Payrolls 10/7 0K 63K Significant

After last months zero for new jobs created, an unexpected jump in newjobs could create some additional upward pressure on mortgage rates.

Consumer Credit 10/7 12.0B 7.0B. Limited

Consumers are beginning to borrow slightly more. If we see this

indicator remain level or grow, rates will feel some upward pressure.

Weekly Mortgage Newsletter

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