Natick Condominiums

Rates on key mortgage products appeared to have eased slightly on Friday during a holiday-thinned session when the U.S. government bond market and federal offices were shut for Veterans Day.

After Thursday's late auction-induced bounce up in Treasury prices had scant immediate impact on mortgages, home-loan rates by midday on Friday had, indeed, edged off. But how well those softer quotes represented the broader market remained unclear, given the closure of the cash Treasuries market for the day.

Treasuries trading will resume with normal hours on Monday, Nov. 14.

Stocks Advance Again

Key U.S. stock indexes advanced again on Friday after Thursday's rise, underpinned partly by a rebound in automaker General Motors Corp. GM's shares had advanced after midday Friday to $24.47, up $0.96 or 4.08 percent, after its union workers okayed an agreement that will reduce GM's health-care costs.

GM's stock on Thursday slid to a 23-year low amid concern about its accounting procedures following news late Monday that it had overstated 2001 earnings, citing mistakes in the way it accounted for suppliers' credits.

Continued erosion on Friday in crude oil prices, which briefly slipped below $57 a barrel to their lowest price since July, heartened the stock market as well during the thinly traded session.

At 2:30 p.m. EST on Friday:

The Dow 30 Industrial Index was up 36.54 points (+0.34 percent) at 10,676.64; the Nasdaq Composite index rose 4.48 points (+0.20 percent) to 2,201.16, and the Standard & Poor's 500 Index firmed 1.84 points (+0.15 percent) to 1,232,80.

The following reiterates Thursday's closing levels for government issues:

The 30-year Treasury bond rallied 1-13/32 in price with the yield slipping to 4.75 percent from 4.84 percent on Wednesday.

The 10-year Treasury note gained 19/32 in price with the yield slipping to 4.56 percent from 4.64 percent on Wednesday.

The 5-year Treasury note rose 5/32 in price with the yield falling to 4.48 percent from 4.56 percent on Wednesday.

At 1 p.m. EST on Friday, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:

The 30-year Conventional Fixed-Rate Mortgage was at 6.103 percent versus 6.123 percent late on Thursday.

The 15-year Conventional Fixed-Rate Mortgage was at 5.648 percent compared with 5.675 percent late on Thursday.

Coming Up:

The first bit of economic data is due on Tuesday, when October retail sales figures are expected to show a 0.6-percent decline but rise 0.3 percent excluding auto sales. Also on Tuesday, the October producer price index is forecast firming by 0.1 percent, with the core rate expected to rise 0.2 percent.

Over the weekend and after Friday's government holiday, mortgage rates likely will stay stable as lenders wait to see whether Treasuries can build on Thursday's price rally.

Laura Jacobs

ljacobs@interest.com

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