Insignia Mortgage

Market Commentary – 6/5/15

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U.S. bonds rose this week with a volatile spike Friday in response to a solid Jobs Report. The headline number in Friday’s Jobs Report was 280,000 jobs created last month, which beat expectations. This was better than expected.The jobs number increased the prospects of a Fed “lift off” from near zero interest rates. Both bonds and stocks continue to trade with a keen eye on when the Fed will increase rates. While the jury is still out on whether October will be the month, the odds increased Friday morning in favor of an increase.

Technically, long term mortgage bonds broke through key technical multi-year resistance bands. This has priced up mortgages across the board.

With the current 10 year U.S. Treasury at 2.38%, we are biased toward locking in loans at the time of application.

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