Daily Mortgage Market Information

Judging by the early trading action in the mortgage market this morning -- investors seem to be indicating they where perhaps a little too aggressive with their response to last Friday's better-than-expected news from the labor sector.  The August nonfarm payroll was certainly not as bad as many had anticipated - but it certainly was not good enough to suggest a period of robust job growth is just around the corner. 

Renewed concerns regarding the potential redevelopment of a sovereign debt crisis in Europe together with a change in investors' thinking regarding the domestic economy has created a "flight-to-quality" buying spree that is packing enough financial firepower to be supportive of steady to fractionally lower mortgage interest rates today. 

This afternoon's $34 billion 3-year note sale to be conducted by the Treasury Department should draw solid demand given the current market environment - rendering the event essentially "toothless" with respect to its potential impact on the trend trajectory of mortgage interest rates.