Mortgage backed securities (MBS) gained +61 basis points from last Friday's close which caused 30 year fixed rates to move lower for the week. We saw our best rates on Wednesday and our worst rates on Monday.

The benchmark FNMA 3.5 November mortgage backed security (MBS) had one major movement during the week which was almost solely responsible for rates decreasing. This was due to Tuesday's Non-Farm Payroll release.

The market was expecting around 180K new jobs. But the reading was much lower at 148K. Many economists think that we need at least 150K new jobs each month to see any measurable economic growth. Bonds generally do better in low or negative economic growth, so this reading was positive for bonds and therefore your mortgage rates. Traders also viewed this data as a signal that the Federal Reserve would have to keep their massive monthly $85 billion Treasury and MBS purchases in place until at least the 2nd quarter of 2014 which will keep rates at low levels for an extended period of time.

Mortgage Rates

Anthony HoodEquity Investment CapitalOffice: 949-891-0067Email: tony@equityinvestmentcapital.comwebsite: www.equityinvestmentcapital.com