| Last | Change | Percent | |
| S&P Futures | 1645.9 | 14.6 | 0.89% |
| Eurostoxx Index | 2766.1 | -8.0 | -0.29% |
| Oil (WTI) | 107.2 | -0.4 | -0.38% |
| LIBOR | 0.26 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 82.34 | 0.256 | 0.31% |
| 10 Year Govt Bond Yield | 2.84% | 0.05% | |
| Current Coupon Ginnie Mae TBA | 104.1 | 0.0 | |
| Current Coupon Fannie Mae TBA | 102.8 | -0.4 | |
| RPX Composite Real Estate Index | 200.7 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.47 |
Markets are stronger after a return from the long Labor Day weekend. While a short week, we will have all sorts of important data, with Friday's jobs report the most important. Risk-on feel, as stock index futures are rallying and bonds / MBS are getting hit.
Friday's jobs report will probably answer the September vs December question. If it is strong, the next questions will concern the actual amount and distribution of the cuts. The consensus seems to be that the Fed will reduce purchases by $10 billion a month. Will that be all Treasures, a mix of Treasuries and MBS, or all MBS? While I don't think there is any chance the Fed will choose to do all MBS, there is a chance they could do all Treasuries. And that would be mortgage-rate positive.
Is the Syrian situation market-moving? It has the potential to be market-moving if it spreads to other countries in the Middle East, but on its own, probably not. Any sort of strike by the US will be limited and no one envisions sending troops in. The only real worry is if it drives oil higher, and that will affect Asia more than us.
The MBA Independent Mortgage Banker Report showed average profit per loan decreased to $1,528 (75 bp) in the second quarter from $1,772 (86 bp) in the first quarter. While overall volume was flat, per-loan production costs continue to rise, and we are seeing pricing pressures.
The jumbo market so far seems to be immune to rising rates.
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