Final Update/ Week of November2, 2009

Good Morning Everyone and Happy Friday! Yesterday was one of those crazy days when the stock market rallied like a run away fruit cart and credit markets held their own, too. Today, investors are actually giving us a little help with rates, as we are seeing rates improve by about .25 or so in fee on our 30 year conforming product. Fine – we’ll take both, thank you very much!

This morning’s unemployment report provided a mixed picture from the Labor Dept. The reaction on all markets is nil. The Labor Dept reported this morning that non farm payrolls dropped 190,000 jobs in October. That number is better than the 219K losses in September, but worse than the 175K losses analysts were expecting. The unemployment rate rose from 9.9% in September to 10.2% in October – a 26 year high. The previous over-10% unemployment rate was in the early 1980’s when I was in grade school. This is the 22nd straight month of job losses.

Markets are almost mesmerized by the report, as it appears they were expecting something a bit more flamboyant. Maybe they’re just wore out from all the excitement of the last 10 sessions or so and are taking a breather, and an early weekend. Credit markets are improving, though, and rates are good, so who’s complaining?

Call me on my cell phone if I can help you, but realize that I will not be in the office until Monday morning. Have a terrific Friday and a very restful and relaxing weekend!