From Hostages to QE, Europe May Push Mortgage Rates Down

By Stevie Duffin Updated on 1/9/2015

December saw solid job growth in 2014 according to the latest payroll data. Non-farm payrolls showed a 252,000 increase, and unemployment sank to its lowest in over six years, sitting at 5.6 percent. News on average hourly wages was not as strong; a five cent per hour drop was reported today. 

Bonds had a much more significant reaction to the hostage standoff in France and ECB hints about a less imminent quantitative easing (QE), gaining ground into the morning before tapering off and moving sideways. Watch for static or dropping mortgage interest rates. 

Thursday: MBS are in weaker territory today, likely no thanks to a dip in weekly jobless claims, since recent mortgage bond trading has been less influenced by domestic data and more so by overseas markets. Watch for rising mortgage interest rates.

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• 30 year (FRM) rates at 3.74 (+0.03).
• 15 year (FRM) rates at 3.06 (+0.01).
• FHA 30 year Fixed rates at 3.25% (0.00).
• Jumbo 30 year Fixed rates at 3.67% (+0.02).
• 5/1 ARM rates at 3.24% (-0.01).