Holiday Hangover…

  • January 2, 2014

hangovertoonHappy New Year! The bond market opened this morning for the first trading session of 2014 to a limited crowd. Maybe everyone welcomed 2014 with a little too much gusto. Trade volume in the mortgage market remains light, with most traders out for the holiday. That has been good news for us; mortgage rates have remained stable today.

  • The Labor Department released Jobless Claims today. The number of people filing for jobless benefits fell by 2k to 339k last week. This steady decline should have affected the bond market today. But, no one really noticed and mortgage rates were flat to Tuesday’s rate sheet.
  • ISM Manufacturing Index was also released today. This measures manufacturing activity over the course of the month. Any number above 50 indicates economic expansion; below 50 can indicate a recession. December, just as expected, was down 3/10ths of a point to 57. This still suggests strong growth in the industry. Usually this means bad news for the bond market causing rates to increase. However, the market barely noticed today. Blame the holiday hangover.
  • Construction spending rose to its highest level in nearly five years in November. It increased 1 percent to an annual rate of $934.4 billion, the highest level since March of 2009.  This great news did nothing to mortgage rates today. It does seem mundane after the New Y ears Eve festivities around Wall Street, doesn’t it?

Tomorrow should be another quiet day before everyone gets back on Monday. Hopefully everyone will return hydrated, rested and ready to go!

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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