Monday Market Commentary: Rates Dip Slightly on Weak Employment Report

by Alex Stenback on September 10, 2007

Rate_chart_910
                                                                              Graphic via MSNBC
Last Week:
A very weak jobs report, showing the economy lost 4,000 jobs, sparked a selloff in stocks and a rally in mortgage bonds.  This would also seem to make a cut to the Fed Funds Target Rate a foregone conclusion (which, it must be noted, may NOT help mortgage rates.) Most mortgage products shed .125-.25% over the week.
This Week:
Aside from some scheduled speeches by Fed members (which will be watched closely for hints as to the Fed’s next move,) Friday’s retail sales report is the big event on the calendar this week – a strong report may hurt mortgage rates, a weak one may put additional downward pressure on rates.  Until then, watch the stock market – further selloffs may drive rates lower, while a strong recovery may push rates up.
This Week’s Economic Calendar [barrons]

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