Dow went up 82, decliners over advancers better than 3-2 & NAZ gained 46.  The MLP index was steady in the 239s & the REIT index fell 2+ to the 338s while yields rose.  Junk bond funds slid lower & Treasuries were heavily sold, raising yields substantially (more below).  Oil was even in the 82s following its recent decline & gold rebounded 6 to 1838.

AMJ (Alerian MLP Index tracking fund)

September jobs growth tops expectations as unemployment rate ticks up

Mortgage rates rose again this week, continuing their upward march & contributing further to plummeting demand in the housing market as more would-be buyers retreat.  Freddie Mac's latest Primary Mortgage Market Survey shows the average rate for the benchmark 30-year fixed-rate mortgage jumped to 7.49%, up from 7.31% last week & from 6.66% a year ago.  The rate for a 15-year mortgage also climbed, averaging 6.78% after coming in last week at 6.72%.  One year ago, the rate on a 15-year fixed note averaged 5.9%.  "Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed," Freddie Mac chief economist Sam Khater said.  "Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand."  The Mortgage Bankers Association reported Wed home-purchase applications tumbled 6% to a nearly 3-decade low last week.  The data shows application volume is down 22% compared with the same time last year.   Housing affordability in the US reached an all-time low this summer & continues to get worse.  Typically, in a market where interest rates rise as fast they have under the Fed's aggressive rate-hike campaign, home prices would be expected to pull back.  But prices remain high due to a lack of homes for sale as more homeowners who are locked in at lower interest rates stay put rather than sell.  Realtor.com's Sep housing report released this week shows home prices rose for the 2nd month in a row on an annual basis, while the number of homes on the market fell for the 3rd consecutive month.  However, there was a month-over-month increase in listing price reductions.

Mortgage rates jump again as high home prices, low inventory persist

Treasury yields rose, with the 10-year nearing a 16-year high after the latest jobs data came in stronger than economists anticipated.  The yield on the 10-year Treasury was up by 9 basis points at 4.809%.  It had hit a fresh 16-year high earlier in the week, rising as high as 4.884%.  The yield on the 2-year Treasury  was last trading at 5.079% after rising by 5 basis points.  Yields & prices have an inverted relationship & 1 basis point is equivalent to 0.01%.  Wages grew modestly less than forecasted.  Average hourly earnings rose 0.2% on the month & 4.2% on an annualized basis, while economists expected gains of 0.3% month over month & 4.3% year over year.  Additionally, Aug & Jul nonfarm payrolls were revised upward by a combined 119K jobs, far more than previously reported.  This report comes as central bank policymakers assess where Federal Reserve rates will go from here.  There have been mixed messages from policymakers about whether rates will need to go higher still to ease the economy, including the labor market, & cool inflation.  However, Fed officials appear to widely expect rates to stay higher for longer.

U.S. 10-year yield jumps back near 16-year high after better-than-expected jobs report 

Dow Jones Industrials