Industry News
Mortgage Industry News
Continuing Jobless Claims Improve
10/08/2009
Initial and continuing jobless claims printed much better than expectations; stock futures are rallying. According to the Fannie ex-chief credit officer Edward Pinto, the FHA will have $54B more in losses than it can withstand, “It appears destined for a taxpayer bailout in the next 24 to 36 months”. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates somewhere between 0% and .25% through January 27th, 2010. Currently, the Ten Year yield is at 3.20% (3.23% yesterday) and the 2-10 yield spread is at 231bps, flattening 4bps since yesterday morning.
