Mortgage Backed Securities are Minus 28bps today.

Milwaukee mortgage rates started to move up last week. We questioned why they would be pulling back other then just getting ahead of themselves. Today they restarted their ascent. This after weekly jobless claims came in lower by 14,000. ADP also said there were 157,000 new jobs created ahead of the 60,000 anticipated. That gives markets reason to believe tomorrow's job reports will be favorable. Equity markets are cheering and moving higher today.

The Treasury said this morning that it will auction $66 billion in debt next week. This is a surprise move and brilliant. The Fed had been buying a large supply of the debt offered. When you have lost so much demand you must reduce the supply. This may help keep the prices up and help smooth over the transition to no Fed purchases. The last three auctions were met with tepid interest. This gives the Fed and Treasury hope these auctions will perform better.

I know you may have missed the 4.5% yesterday and you feel like Charlie Brown having the football moved again. You still have the chance to get a great rate before tomorrow's game changing jobs report.

Milwaukee Mortgage Rates are moving HIGHER and we are advising all of our clients to lock.

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