Market Comment
The labor market continues to remain weak as Initial Claims rose more than expected in the latest week and was the highest count since mid-December.
Fourth Quarter Productivity numbers rose 6.2%, a touch below expectations, and higher productivity suggests that corporations are squeezing more work out of existing employees, rather than hiring.
Tomorrow, the Labor Department will report Non-farm payrolls for January. Even if there is an upside surprise, I feel that it will be a selling opportunity for Mortgage Bond traders, which would push Bond prices lower and home loan rates higher. With this in mind, the best strategy would be to Lock ahead of tomorrow’s release.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
Fourth Quarter Productivity numbers rose 6.2%, a touch below expectations, and higher productivity suggests that corporations are squeezing more work out of existing employees, rather than hiring.
Tomorrow, the Labor Department will report Non-farm payrolls for January. Even if there is an upside surprise, I feel that it will be a selling opportunity for Mortgage Bond traders, which would push Bond prices lower and home loan rates higher. With this in mind, the best strategy would be to Lock ahead of tomorrow’s release.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
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