Maine Mortgage Market Update 11.03.2010

Mortgage bond prices remain positive this morning despite the data, helping rates extend the improvements from yesterday.

Today we have ADP employment, factory orders, and the results from the Fed meeting.

Factory orders up 2.1%, expected up 1.6%.

ADP employement showed a job increase of 43k. Analysts were expecting an increase of 23k. So far the reaction has been muted by hopes of continued Fed quantitative easing. Quantitative easing is tool used by the Fed to increase the supply of money by increasing the excess reserves of the banking system. The Fed basically creates money out of nothing, crediting it’s own accounts, then uses those funds to purchase financial assets usually including government bonds and mortgage backeds securities from financial institutions.

The rest of the week looks to be interesting. We still have productivity data and the employment report. There is more potential for wild market swings so be cautious.

Published by Seth Jacobs

Mortgage Broker, Disc Golfer and First Person Shooter Fan living in Vacationland.

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