Daily Market Update 2/5/09

Rates inched lower Thursday as Weekly Jobless Claims soared to a 26-year high of 626,000. Factory Orders fell 3.9% last month, more than forecast. Productivity rose unexpectedly. The Bank of England cut its benchmark rate to 1% today, the lowest level since the Bank’s founding in 1694. The Senate plans to temporarily double the maximum tax “credit” for home buyers to $15,000 as part of the proposed economic stimulus package. The credit is actually an interest-free loan requiring repayment over 10 years. Investors are now focusing on tomorrow’s Non-farm Payrolls report. Economists project net job losses of 500,000 for January, with the Unemployment Rate rising to 7.5%. Higher figures could push mortgage rates lower.

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