Rates remain at 2011 lows on mostly weaker economic reports. Below is a recap last week to today, newest first. Mortgage bonds rise on worse news, causing rates to fall and vice versa, so headlines are categorized accordingly. Rates should hold this week, which is dominated by May jobs reports (Wed and Fri) with latest
Chicago PMI
Rates remain at 2011 lows on mostly weaker economic reports. Below is a recap last week to today, newest first. Mortgage bonds rise on worse news, causing rates to fall and vice versa, so headlines are categorized accordingly. Rates should hold this week, which is dominated by May jobs reports (Wed and Fri) with latest
Stocks are flat today (S&P -.17, Dow +1.51) as are bonds (10yr Note +6 bps, FNMA 30yr 4% coupon +9bps) as markets prepare for the Bureau of Labor Statistics (BLS) jobs report tomorrow. Consensus estimates call for +188k non-farm jobs to be added to the economy in April, but that number could be meaningfully higher.
Flat consumer inflation and higher business inflation are canceling each other out this morning, leading to relatively flat mortgage bond trading. The result is rates (on 30yr fixed loans up to $417k) that are holding about 4.875%. We’ll discuss the debate between higher business inflation and flat consumer inflation throughout this week. For now here’s
On Friday, a revolution and resulting chaos in Egypt caused U.S. rates (on 30yr fixed loans up to $417k) to drop .125% but Monday rates rose that amount, back to 4.875%, as mortgage bond traders re-focused on U.S. business inflation. The Chicago Purchasing Managers Index is one of many monthly manufacturing surveys done across the