The Fed met this week and decided to not change their fund rate. This indirectly impacted rates causing interest rates to improve.

The market opened today with the following data: at 8:37 AM: MBS are up +75bp after weaker than expected Employment data. at 8:50 AM: MBS have given back some early gains and are now up +50bp. at 10: AMMBS are up +38bp (UMBS 30yr 5.5 at 100.72), around 47bp higher than yesterday at this time. It has been an extremely volatile morning. A big miss in the Employment data has lifted MBS this morning. Against a consensus forecast of 175,000, the economy gained just 114,000 jobs in July, and revisions subtracted 29,000 jobs from the results for prior months. The unemployment rate rose from 4.1%% to 4.3%, well above the consensus for a flat reading, and the highest level since October 2021. Average hourly earnings, an indicator of wage growth, also fell short of expectations. They were 3.6% higher than a year ago, down from 3.8% last month, and the lowest annual rate since May 2021. The Dow is down 450 points.

Friday Rate update: For a 30 year conventional fixed rate mortgage, the par rate is 6.490%/APR 6.708%, on a $400,000 purchase w/20% down and loan of $320,000 with a P/I payment of $2,021. Lowest rate at 4.950%/APR 5.639% with $17,002 in discount points to buydown the rate with a P/I payment of $1,708.