7/30/07 Market Snapshot
Last week treasuries yields hit their lowest level in over two months as the markets experienced a flight to quality due to the drop in stock prices. Lower treasury yields typically mean mortgage markets experience a corresponding drop in mortgage rates. However, mortgage rates have not followed suit as the markets continue to demonstrate concern over sub-prime loan performance, and investors are opting to keep their investments in treasury bonds instead of mortgage bonds.
This week is full of economic news to be reported, with the most anticipated announcement coming on Friday as we watch for the Employment Data. All markets will be watching to see how many new jobs have been created and the corresponding impact on wages. This data may be a good indicator of the direction the Feds will take in the next few months.