“IT’S JUST A JOB. GRASS GROWS, BIRDS FLY, WAVES POUND THE SAND…I BEAT PEOPLE UP” (Muhammad Ali) …and while most Americans aren’t seeking a job that involves knock outs and body blows, a few less new job creations than expected were dished out during November. Expectations were for 204,000 new jobs created during the month November, and based on the previous two months of hot job growth, hopes were flying high for a strong number. The actual figures came in at a lower than expected 112,000, and additionally, the previous two month's big numbers were revised lower by a total of 54K jobs.

Remember that Bonds like weak economic news…so upon the release, Mortgage Bonds moved sharply higher and home loan rates improved by .125% on Friday alone. But, by and large, they were simply regaining the ground lost earlier in the week, having been buffeted lower by news of declining oil prices and continuing weakness in the US Dollar.

HAS YOUR CREDIT TAKEN SOME BLOWS? THOSE BUMPS AND BRUISES ON YOUR CREDIT REPORT COULD NOW TRANSLATE INTO HIGHER INSURANCE PREMIUMS, UTILITY RATES…AND EVEN FEWER JOB OPPORTUNITIES. TAKE A LOOK AT THIS WEEK'S MORTGAGE MARKET VIEW TO LEARN MORE…AND FIND OUT HOW YOU CAN GET A FREE COPY OF YOUR CREDIT REPORT.

So after all of last week’s motion in Bonds and home loan interest rates…will the wild ride continue? This coming week brings little excitement in the way of high-powered economic news, so Traders may take time to digest the big Jobs Report of last Friday and let the market settle. Home loan rates will likely stabilize and remain neutral over the next week.

The chart below shows the huge move made upon the Jobs release…but notice that the ride higher in Bond movement was stopped in its tracks by overhead resistance, in the form of the 50-day Moving Average.

Now the “Moving Averages” may sound like the name of a great new rock band…but take just a minute to look at these fascinating figures. The Moving Averages indicate the average price of the Bond for the previous “x” number of days, which naturally will move as the average price moves. These Moving Averages act as technical “floors of support” when they are underneath the Bonds current trading price, and as “ceilings of resistance” when they are above the Bonds current price. Bonds can gain enough momentum to crash through these layers upon big news – as we can see in the chart below, when they bashed right through the 100-day Moving Average (the orange line) upon the news of the weak Jobs Report. But notice how they ended up being turned back and held in place by the next ceiling of resistance at the 50-day Moving Average. In the absence of big news that could send Bonds rocketing lower, the 100-day Moving Average which was a ceiling, now becomes a floor of support that may help Bonds hold their current levels.

Credit Scores – Guess who wants to know yours...

You know the feeling. You walk into a dark room you think is empty, and just before you reach out to flip the switch; you hear “Hey there” or “Boo!” This could either be the start of something good or something you’re going to regret.

In the same manner…just who might be lying in wait, watching you and your credit as you innocently stroll in the door? More folks than you might think…and it’s all perfectly within legal bounds. Welcome to the ever-expanding world of credit score influence. If you have been to a car dealership or financed a home recently, you have probably been exposed to the influence of credit scores, also referred to as FICO scores. Taking a look at the website www.myfico.com can give you a quick idea on how low scores can impact you when applying for a mortgage.

Long held as a measuring stick for mortgage lenders to evaluate credit applications, credit scores are now impacting you more than you may know. In fact, you may be astounded at who wants to know your score and what it means to you. More importantly, you need to know how a low score can cost you…big time.

Credit scoring was initially seen as a tool to determine the likelihood that a borrower might default on a loan. The higher the score the greater the odds that borrower would always pay on time. The lower the score, the greater the chances a borrower will default on a loan. Pretty simple, right? But now the reach of credit scores has lengthened…dramatically. It’s no longer just a “lender thing” – Employers, Attorneys, Insurance Agents, Utility companies and others are now clamoring to know your FICO score.

• Good news – I just saved a ton of money on my insurance…or did I? If you have a low credit score, be prepared to pay. Insurance companies now routinely check the credit scores of new clients. If you have banged up credit, auto insurers think you’ll be more likely to bang up your car. End result, higher premiums before you ever make a claim.



• No Job for You! Employers have the freedom to check your credit rating with many employment applications that are completed. A low score could influence an employer to pass you over for a job. Consumer giant Johnson & Johnson is currently being sued by a job applicant stating she believes the company reneged on a job offer after they pulled her credit.



• Turn on the Lights! Utility companies, cell phone carriers, and cable providers all pull your credit. If you have any dings in your report that pull your score down, be prepared to pony up extra dough for the security deposit. Texas utility TXU Energy was almost ready to pull the trigger on adjusting utility rates based on credit scoring. They have since pulled away from the idea but don’t be surprised if others jump on board.

So…what can you do to save from being stung by the credit score bandit? Pay your bills on time. Keep balances on revolving accounts to below 50% of available credit limits. Keep accounts active and open for an extended period of time. Limit frequently applying for new credit. Don’t open cards up all over town just to save a few bucks here and there. Check your credit report annually for errors and get them fixed. You never know when a problem could occur that just might cost you. Credit reports can be had from myfico.com for $39, or call your mortgage professional for their ideas on getting a copy of your report. Or if you want to wait, a law was recently passed that will make FREE annual credit reports available to everyone in the country by late next year.

And if you do have questions about your own credit or credit in general…consult your mortgage professional, who is well versed in reading and analyzing credit reports and scores.

The economic calendar settles down this week, with primarily lower impact reports. Most of the reports having some degree of potential impact are set for release on Friday. These include the Producer Price Index (PPI), the Core PPI, and the University of Michigan’s preliminary Consumer Sentiment Index. Bond Traders will also keep an eye on the weekly Initial Jobless Claims data set for release on Thursday.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

For the week of December 06 – December 11