| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Current Mortgage Rates for Monday, October 1, 2012
Stocks are rallying this morning, and we may see brief upward pressure on mortgage rates (although I think that pressure will abate later in the week, if not later in the afternoon). The market movement is largely because of positive U.S. manufacturing data, but I think Europe is going to be the bigger story as the week drags on, until the focus snaps back to the U.S. when the monthly employment data is published on Friday.
In today’s economic news, the national Purchasing Manager’s Index, which seeks to gauge manufacturing activity in the United States unexpectedly rose to 51.5 in September, up from 49.6 in August. Numbers above 50 indicate expansion while number below indicate contraction. The consensus expectation was for continued contraction. Although this is a positive report, 51.5 is not an especially strong reading, and many of the other manufacturing reports we’ve seen recently have been negative. I’m going to need to see a clear upward trend before I declare this to have any particular meaning. Still, this report is causing stocks to rise and should put upward pressure on mortgage rates.
In other economic news, construction spending declined slightly in August, somewhat below the consensus expectation. The report is not really strong or weak enough to make any real impact.
Later in the week we will get more manufacturing data, some Fed speak, and the all-important unemployment report on Friday. The report probably has as big an impact on the presidential election as it will on the markets, and it’s going to be interesting to see how it is spun if unemployment falls again as the result of people dropping out of the labor force.
I’ll probably write more about Europe later in the week, but a couple brief words here: Europe is still going to hell in a handbasket. New unemployment data shows a rate of 11.6% across the Eurozone, with nearly a quarter of the population in Greece and Spain unemployed. Suffice it to say, things are going very poorly over there, which could be to the short-term benefit of mortgage rates but to the longer-term detriment of everybody.
So mortgage rates will likely remain low this week, and depending upon the data (and the European situation) could set all-time lows again. It’s a good time to lock in a low rate if you’re looking for a mortgage.
Today’s Links:
ISM: U.S. PMI ticks up to 51.5 up from 49.6 in August. This is much better than expectations. We’re getting some really mixed data lately, and it is hard to make heads or tails of it.
Business Insider: Why a Bar Owner Yelling at the Cops is the Defining Image of Spain’s New Crisis. Apparently this guy blew up on Twitter over the weekend. Seems like the kind of picture that is going to win some awards at the end of the year.
Guardian: Eurozone Unemployment Stuck at Record 11.4 Percent.
Reuters: Euro Zone Joblessness Risks “Economic Disaster”.
Eurostat: Approximately 25% unemployment in Greece and Spain!
NYT: Before Debate, Tough Crowds at the Practice. Do you enjoy prevarication, misdirection, and obfuscation? Then the presidential debates are for you.
Reuters: Factory Activity Caps Worst Quarter in Three Years.
Mental Floss: 12 Proposed U.S. States That Didn’t Make the Cut.
Yahoo: Tymoshenko Calls on Ukraine to Rise Up Against “Mafia-Rule.” This lady must be utterly fearless. She is also rocking what is almost without a doubt one of the strangest hair styles I’ve ever seen.
The New Yorker: Super-Rich Irony – Why do Billionaires Feel Victimized by Obama?
Dave Dayen: Another Foreclosure Fraud Settlement Scam: Banks Trying to Get Credit for Already Discharged Debt.
Credit Slips: Foreclosure Crisis Year Six.
Reuters: Fed’s Fisher Says U.S. “Drowning in Unemployment”. Yes we are. A fact that has been readily apparent for at least four years now.
NYT: Payroll Tax Cut is Unlikely to Survive Into Next Year.
National Geographic: Vampire Squid Exposed. Insert your Goldman joke here.
Total Mortgage consistently offers some of the lowest current mortgage rates, jumbo mortgage rates, and fha mortgage rates in the country.
Related Posts
2012-10-02 09:01:40
Source:
