WeeklyBasis 10/06/03: Rates Up On Jobs Data

Rates increased by about 20 basis points Friday on news that unemployment held at 6.1% (instead of the predicted increase to 6.2%). This indication that the job market could be stabilizing caused investors to sell bonds in favor of stocks, driving yields up. However, this was more of a trading phenomenon than a fundamental shift. Most prominent economists think that companies won’t go on hiring sprees until corporate profits return. This coming economic week kicks off slowly so rates should be steady. Rates could edge up later in the week as bond investors will likely trim positions ahead of the long weekend and PPI and Trade Balance releases on Friday.

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Conforming ($50K – $322,700K) – NO POINTS
30 Year: 5.875% (6.015% APR)
15 Year: 5.25% (5.39% APR)
5/1 ARM: 4.75% (4.90% APR)

Jumbo ($322,701 – $650,000) – NO POINTS
30 Year: 6.25% (6.39% APR)
15 Year: 5.5% (5.64% APR)
5/1 ARM: 4.875% (5.025% APR)