Fall is Here â€“ Applications Up
As fall begins to kick into gear, borrowers are back from summer vacations and have turned focus on the favorable mortgage rate environment. We’ve seen a national increase in mortgage applications over the last couple days. Heading into the weekend, the U.S. labor market reported zero job growth in August. With the market expecting 68k new jobs, Treasury yields dropped, with the 10yr yield falling yet again below the 2% level. Mortgage rates fell as well and continued to fall into the beginning of this week as concern over global recession had investors pulling money out of equities in favor of the relative safety of U.S. debt.
Although we don’t have many economic reports this week, with last week’s economic reports indicating a stalling economy, keep a close eye on news of any form of proposed government stimulus. This morning, we saw news from the White House that a request for a $300 billion jobs package will be made to Congress. Giving some hope of growth, this has pushed some money back to equities, tapering the decline in mortgage rates.
On Thursday, President Obama and Fed Chairman Bernanke are both scheduled to make appearances. If there are signs of a stimulus plan that may jumpstart the economy, mortgage rates may increase slightly in response.