Mortgage Rates Firm
U.S. Treasury securities began Thursday up, bolstered by the increase in first-time jobless claims. But buying soon turned to selling as bond traders digested yet another statement by a Fed official - this time from Kansas City Fed president Hoenig, who cited rising wages and commodity prices as reasons to rein in inflation. Dallas Fed president Fisher reaffirmed his Tuesday message regarding the Fed's vigilance in controlling inflation, which would necessitate further short-term rate hikes.
At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year Conventional Fixed-Rate Mortgage was at 5.739 percent from 5.742 percent at Wednesday's close.
The 15-year Conventional Fixed-Rate Mortgage was at 5.337 percent from 5.358 percent at Wednesday's close.
Coming Up:
The big news on Friday is the September Employment Report, the most-anticipated of the economic indicators. Analysts are expecting a decline in non-farm payroll jobs - the first since May 2003. Estimates are all over the map, however, ranging from a loss of 129,000 jobs to as many as 200,000. These numbers will likely be subject to big revisions, however, due to the impact of the hurricanes. A loss of jobs at the high end of the range might give Treasuries a little boost, but this is a tough one to call. New jobs in August hit 169,000, and the unemployment rate came in at 4.9 percent. This number is expected to escalate to 5.1 percent, but it is taken from a separate survey.
Two additional reports will pale compared to the jobless numbers. There are wholesale inventories for September and the August report on consumer credit. Inventories are expected to rise 0.4 percent - a big increase over the minus 0.1 percent reading in August. Consumer credit is also expected to swell to $7.5 billion in August - close to double the $4.4 billion in July.
Treasury yields rose slightly today, but it is unlikely that mortgage rates will move any higher -- at least until traders have scoured the employment report.
At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year Conventional Fixed-Rate Mortgage was at 5.739 percent from 5.742 percent at Wednesday's close.
The 15-year Conventional Fixed-Rate Mortgage was at 5.337 percent from 5.358 percent at Wednesday's close.
Coming Up:
The big news on Friday is the September Employment Report, the most-anticipated of the economic indicators. Analysts are expecting a decline in non-farm payroll jobs - the first since May 2003. Estimates are all over the map, however, ranging from a loss of 129,000 jobs to as many as 200,000. These numbers will likely be subject to big revisions, however, due to the impact of the hurricanes. A loss of jobs at the high end of the range might give Treasuries a little boost, but this is a tough one to call. New jobs in August hit 169,000, and the unemployment rate came in at 4.9 percent. This number is expected to escalate to 5.1 percent, but it is taken from a separate survey.
Two additional reports will pale compared to the jobless numbers. There are wholesale inventories for September and the August report on consumer credit. Inventories are expected to rise 0.4 percent - a big increase over the minus 0.1 percent reading in August. Consumer credit is also expected to swell to $7.5 billion in August - close to double the $4.4 billion in July.
Treasury yields rose slightly today, but it is unlikely that mortgage rates will move any higher -- at least until traders have scoured the employment report.
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