Morning Report – Mortgage credit is easing 6/6/14

Vital Statistics:

Last Change Percent
S&P Futures 1941.9 3.4 0.18%
Eurostoxx Index 3294.1 27.1 0.83%
Oil (WTI) 102.9 0.5 0.45%
LIBOR 0.23 -0.001 -0.43%
US Dollar Index (DXY) 80.34 -0.029 -0.04%
10 Year Govt Bond Yield 2.54% -0.04%
Current Coupon Ginnie Mae TBA 106.6 0.1
Current Coupon Fannie Mae TBA 105.8 0.3
BankRate 30 Year Fixed Rate Mortgage 4.17


Stocks and bonds are rallying as the jobs report comes in more or less as expected.
Nonfarm payrolls increased by 217k in May, more or less in line with the 215k expectation. The unemployment rate was flat at 6.3% and the labor force participation rate remained stuck at its lows – 62.8%. Average Hourly Earnings increased by .2% and average weekly hours were flat at 34.5.
Mortgage credit eased in May, according to the MBA. The higher the index, the easier it is. When you look at the index on a historical basis, you can see credit is still tight.

Federal Reserve Bank of Minnesota Fed Head Narayana Kocherlakota said he believes the central bank will need to keep rates very low for a long time to come, largely due to the Fed’s failure to meet either goal of is dual mandate. The downside: inflated asset prices, high asset return volatility, and hieightened merger activity.
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