Happy 4th of July Weekend!

Mortgage Rates are slightly better in the last 5 trading days. Mortgage Rates were deemed to be at risk of getting worse with the release of today’s Non-Farm payroll numbers. Market was looking for 700,000 new jobs, and the reading was 850,000.  This number came in HOT!  Rates should be under pressure, because as the economy and inflation heat up, the Fed will have to start raising rates and tapering bond purchases soon.  However, that is not what happened, bond rallied higher with rates improving.  Why would this happen when the Non-Farm payroll numbers beat expectations by such a large number and yet the bond market is happy. Well, if you drill down and think about it, you will see that Hourly Earnings and Average Hourly Work Week both declined and missed expectations!!  This data is a telling us that consumer earnings and buying power are declining.  The bond market is very smart, and I anticipate we will see rates stay low, and maybe even get a little lower next week.

Bottom Line: Recommending clients float this holiday weekend and will review where bond prices stand on Tuesday when the market re opens.


Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140


About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 46 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 26 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.