Danny Salas

Archive for January 7th, 2010

Chico, CA Interest Rates Market Report – Economic Influences – January 7, 2010

Jobs Numbers Released Tomorrow

Greetings From The Riviera Maya

Sorry about yesterday’s post…I was traveling through Phoenix with a 2 1/2 hour flight delay, before hitting the Aventura Spa Palace, near Playa del Carmen.  I’ll see about posting pictures, later.

Initial Jobless Claims

Interest Rates took a smack in the face, yesterday, however, managed to close the day, only slightly effected.  The net result was about a loss of about .125% in rate.  The volatility continues today, as the market tries to decipher what to do with today’s better than expected Initial Jobless Claims number.  The market expected 439,000 new claims, however, came in at 434,000.  Also, of interest, was that the number of continuing claims is down to 4.8 Million, as opposed to last week’s 4.9 Million.  Here’s what to be careful of, though; people’s unemployment compensation is expiring, or running out.  So, there are still millions that are collecting emergency benefits that are not calculated in the continuing claims numbers.

Auctions Next Week

The Fed will be announcing next week’s auction numbers, today.  Remember, these auctions can be true market shakers, so be prepared.

The Bank of England

The Bank of England left its overnight rate unchanged, at 0.5%.  This is still their historic low, but there are concerns that they will increase their rate, starting next month.  This could have another negative effect on the dollar.

Extension Of The MBS Purchase Program?

The Fed has stated, at its last two meetings, that the Mortgage Backed Security Purchase Program will expire in March of 2010.  However, the minutes from their last meeting, were released yesterday, and there is some heavy discussion regarding concern, from some Fed members, that the program is going away.  Their next meeting is January 27.  It will be interesting to see if they continue to discuss ways to continue a similar type program or extend the program even further.

Locking Advice

Today is probably going to be an excellent day to lock.  Tomorrow, Jobs Numbers come out, and the estimates are all over the place.  Initially, they expect no movement away from last month’s figures.  However, yesterday, they expected 35,000 job losses.  This makes it easier to just lock in.  Simply because if things are better than expected, rates will rise.  Predicting a loss in jobs is kind of a safe position, because it would truly be a surprise if we lost more than 35,000 jobs.  I think I’d play it safely!

What To Subscribe To:

Get Our Twitter Updates
Get Our Blog Blast
Connect With Us On Facebook