Industry News
Mortgage Industry News
Unemployment Rate Drops
04/01/2011
Nonfarm Payrolls printed at a better-than-expected +216K; the unemployment rate dropped from 8.9% to 8.8%; U6 drifted lower to 15.7%. Stock futures are higher; Treasuries and mortgages are down after the release. Last night, two trade groups (National Association of Mortgage Brokers and National Association of Independent Housing Professionals) won an appeals court ruling temporarily blocking the Federal Reserve rule that limits commissions for loan officers in mortgage transactions from taking effect today. Right now, the futures market is pricing in about a 92% chance that the Fed keeps rates between 0% and 0.25% through August 9th, 2011. Currently, the Ten Year yield is at 3.53% (3.41% yesterday) and the 2-10 yield spread is at 262bps, flattening 1bp since yesterday morning.
