Real Estate Rate and Market indicators.

Market Outlook

Thursday, November 05, 2009 7:05 AM

Price Trend: Neutral

Price Volatility: High

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Current Conditions:

FNMA 4.5 100-29 (+1)

GNMA 4.5 101-03 (+1)

10yr Yield 3.539

Today's Economic Data

(PST)

Productivity & Costs 5:30

Jobless Claims 5:30

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Commentary:

Mortgage prices are mostly unchanged this morning in spite of some positive economic data being released.

Productivity surged in the 3rd quarter which is good news for inflation and earnings, but not so good for

people who are out of work. The rate at which people are joining the unemployed ranks slowed last week,

though, as initial jobless claims declined. Mortgages have held up better than Treasuries just as they did

after the Fed announcement yesterday. The FOMC policy statement kept the section about keeping rates

low for an extended period of time. The initial reaction was negative in the bond markets. Mortgages

managed to climb back through the afternoon even as Treasuries struggled.

Tomorrow we get the release of the employment report. Payroll reductions are expected to slow while the

unemployment rate is expected to rise to 9.9%.

Last but not least... Order was restored in the baseball world last night when the New York Yankees

returned to their rightful spot atop the baseball world.