Weekly Market Update from Curt and Shannon

November 5, 2012

November 05, 2012

The Dalpiaz Team
Curt and Shannon
141 S. McCormick Street Suite #107
Prescott, AZ 86303
Ph-928-777-8971
curt.dalpiaz@academy.cc
shannon.dalpiaz@academy.cc
LO License-#0912851 LO NMLS-#151454

Hello Ania,

With one more day until the election, it's important to consider what's at stake. Tomorrow's results could have a major impact on the housing market for years to come.

If you want to share ideas or information, let's touch base as soon as possible. Adding value to your business is always a top priority.

Sincerely,

Curt and Shannon
curt.dalpiaz@AcademyMortgage.com

Job Gains Exceed Expectations

Highlights

Average 30 yr fixed rate

Stocks (Weekly)

	ISM Manufacturing increased to the highest level since May
	Consumer Confidence rose to the highest level since February 2008
	The Treasury will auction $72 billion in 3-yr, 10-yr, and 30-yr securities this week
	China released stronger than expected manufacturing data

Week of 11/02: 0.00%

Dow: 13,200 +100

Week of 10/26: +0.02%

NASDAQ: 3,000 +25

Mortgage-backed securities trading handled the issues caused by Hurricane Sandy without any major disruptions. Stronger than expected economic data also had little impact, and mortgage rates ended the week with little change.

Friday's Employment report showed that the economy added roughly twice as many jobs as expected (including revisions). Against a consensus forecast of 125K, the economy added 171K jobs in October, and the data from prior months was revised higher by 84K. The Unemployment Rate increased to 7.9% from 7.8% last month, as expected, due to an increase in the size of the labor force (see below). Overall, this report was encouraging in most areas. Of note, the collection period for the October data ended before Hurricane Sandy hit, so next month's report will reflect the storm's impact.

The Unemployment Rate is determined in a separate survey and is based on two factors, the number of jobs and the number of people in the labor force. According to this survey, the economy added a whopping 410K jobs, and the labor force increased by an even larger 578K people. Clearly, strong growth in the number of jobs is great news for the economy. A growing labor force is also positive for the economy, and it reflects increased optimism about finding a job, but it leads to a higher percentage of people classified as unemployed.

The most significant economic data this week will be the ISM Services index on Monday. The Trade Balance will come out on Thursday. Import Prices and Consumer Sentiment will be released on Friday. Tuesday's election will dominate the news headlines this week. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

The market commentary material provided is from a third party vendor, MBSQuoteline, and is not necessarily the opinions of the sender or the organization they represent. This information is intended for educational purposes only and should not be construed as investment and/or mortgage advice. Additionally, the material is deemed to be accurate and reliable, but there is no guarantee it is without error.

All products are subject to credit and property approval. Program terms and conditions subject to change without notice. Not all products are available in all states or amounts. Other restrictions and limitations apply.

Academy Mortgage Corporation
1220 East 7800 South
Sandy, UT 84094
p. 801-233-3700