The Week of December 31st; starts with more negotiations in Washington on the debt talks and tax increases. Over the weekend there were many meetings but as has been the case, nothing of substance that can get any agreement. The stock and bond markets are starting quietly this morning with the Senate scheduled to convene at 11:00 am. There is still the potential something may get accomplished at the last minute, based on talks so far though, we wouldn’t bet on it. Going over the Cliff isn’t as significant has media has made out tax increases that are due to kick in tomorrow can easily be negated in a retroactive bill. Neither side wants taxes higher except the President on high income earners.
The week has a number of key economic reports but not until Wednesday. This is employment week; early estimates are non-farm jobs increasing by 150K, non-farm private jobs +145K, the unemployment rate unchanged at 7.7%. Various economic reports over the last few weeks have had less direct market impact with all focus on the Cliff talks. Also this week both Dec ISM indexes, manufacturing and services, Nov construction spending, weekly claims, and Nov factory orders. Technically the 10 yr note and MBS markets are essentially neutral awaiting the results from Washington.
This could be a volatile week depending on the outcome of the Fiscal Cliff, once Washington settles on the terms we will be able to see the markets adjust. For the moment, we ended last week on a positive note in the Mortgage Back Securities with mortgage rates improving a little. We will watch carefully as the days unfold.
For more information on mortgage rates and how they adjust, feel free to email me anytime at Bill@billnickerson.com.
Bill Nickerson
Vice President Mortgage Network
179 Great Road Suite 214, Acton MA 01720
978-399-1313
Providing Mortgages Since 1991
NMLS # 4194
Commercial Residential Reverse FHA/VA
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