Thursday, May 26, 2011

Market commetnary

Weak economic data has interest rates falling this morning, pushing the yield on the 10 year note to 3.08%. GDP for the first quarter came in unchaged at 1.8% despite expectations for growth to be revised upwards to 2.2% to 2.6%.

In addition to GDP, initial jobless claims rose to 424,000 last week, and were revised higher for the previous week. Weekly jobless claims above the 400,000 per week level point to a weakening labor market, and will lower expectations for the jobs report due out Friday, June 3.

Mortgages are benefiting from the improvement in Treasury prices and are approximately .25% better from Wednesday.

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