Daily Market Report 2/26/21

 http://MikesDailyMarketReport.com:  The Personal Income jumped up to 10.0% in January and the Consumer jumped up 2.4%.  Meanwhile, Inflation still shows some tameness, as the Personal Consumption Expenditure (PCE) rose 0.3% in January, while it's YoY bumped up from 1.3% to 1.5%.  However, the Core PCE (excludes food and energy), which carries more weight because it's the Fed's favorite gauge for inflation, remained Unchanged at 1.5% YoY after it (too) rose 0.3% in January.  The Fed's target rate is typically 2.0% for this index; however, it indicated that it's willing to expand it to 2.5% average over time.  The Chicago PMI, which measures manufacturing in the Chicago region, dipped from 63.8 to 59.5 in February.  Lastly, the Consumer Sentiment dropped from 79.0 in January to 76.8 in February (it did improve throughout the month, as it's initial reading in February was 76.2).  Stocks are currently in Mixed Territory, as the DOW remained the lone index in Negative Territory.  The big spike in Yields is the culprit behind the Market volatility this week.  One thing about Yields is that it provides a perception of Inflation, as an increase in rates is used to slow things down to stave off inflation.  Investors were concerned that the Fed would raise the Fed Fund Rate sooner, as well as pull back on their Asset Purchases.  But Fed Chair Powell had temporarily eased those concerns during his 2 day Congressional Testimony.  However, Investors began to disregard those sentiments, as the Markets became choppy again.  While stocks enjoyed the low interest rate environment, now investors are reevaluating their stock positions that are most affected by rising rates, which the Tech Sector has been hit the hardest thus far.  The higher Yields may bring more investors back to the table for Treasuries/Bond related investments.  MBS went thru a wild rollercoaster ride yesterday, as it closed Down 94bps, which is approximately 1 point (so a No Point loan would now cost 1 point, or 1% of the loan balance).  It's still very choppy, as you may see the wicks in the candlestick chart, but it's currently Up 2bps.  Mortgage Rates are about the same after yesterday's close; however, way off from yesterday morning, as most Lenders had multiple price changes to their rate sheets yesterday (for the worse).  Yields are also really choppy, as it's currently just  under 1.52%, but it's been going back-and-forth at 1.47% range.  Hopefully, today's PCE data helped to ease some concerns over inflation.  We'll see!

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Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

Daily Market Report 2/25/21

 http://MikesDailyMarketReport.com: Last week's Initial Jobless Claims report was revised lower, from 861k to 841k; and this week's report vastly improved to 730k.  December's Durable Goods Orders was revised higher, from 0.5% to 1.2%; and January's came in at 3.4% (hotter than it's 1.1% forecast).  When you remove "big ticket" items like military aircraft from the data (due to large numbers having such a big influence on the data), then we have the Core CapEx.  It's numbers for December was improved from 0.7% to 1.5%; and it's January's data came in at 0.5%.  The 2nd look at the Q4 GDP for 2020 came in a little higher than it's initial report of 4.0%, to 4.1% in February.  We'll receive the final revision next month (March).  Pending Home was revised higher for December (going from being down 0.3% to being up 0.5%), which led to a higher drop for January, as it dropped 2.8%.  Stocks are facing a big selloff today, after calming down the past few days on dovish comments from Fed Chair Powell.  However, Yields are spiking higher today, reinforcing concerns for Investors; along, with comments by Fed Member Esther George, whom stated that inflation could rise once more people are vaccinated.  Stocks aren't the only ones selling off!  MBS was down 63bps when I started this report; however, it worsened (down about 76bps currently) after a very poor 7 year Note Auction.  Mortgage Rates have spiked on these Market jumps!  Yields have touched on a psychological level (of 1.50%), as it hit the 1.52% level.

Please subscribe to my YouTube Channel at MikesDailyMarketRpt

Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

Daily Market Report 2/24/21

 http://MikesDailyMarketReport.com: New Home Sales spiked to 923k seasonally adjusted units for January.  Stocks are back into Positive Territory after more dovish comments by Fed Chair Powell during his testimony to the House Committee today.  They started in the Red, then reversed into positive territory mid-day.  Also, other Fed Members are out speaking today, which their message seems to put Investors concerns to bed.  Johnson & Johnson had some good news from the FDA regarding their vaccinations, which they were approved to move forward; and soon (most likely) to be out to the Market.  MBS has had a rollercoaster type of day, thus far!  They started down nearly 50bps, then Up approximately 20bps (70bps swing); and now it's Down about 8bps.  Lenders initially came out with worse pricing early on, then re-priced for the better after the Market improvement.  Mortgage Rates should be similar to what we saw after yesterday's close (which improved during the day, to close +11bps).  Yields have jumped up to 1.38% after touching just over 1.43% earlier on.

Please subscribe to my YouTube Channel at MikesDailyMarketRpt

Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

Daily Market Report 2/23/21

 http://MikesDailyMarketReport.com:  We have 2 HPI (Home Price Indexes) released today for the month of December.  The Case Shiller Index rose by 10.1% YoY; and the FHFA HPI rose by 11.4%.  These are the highest numbers since 2014.  Also, Consumer Confidence rose to 91.3 in February.  Stocks are Down today!  Fed Chair Powell provided his semi-annual testimony before a Senate Committee.  He aimed to ease concerns of hyper inflation and warned of long road to economic recovery.  Markets are still settling afterwards.  Meanwhile, MBS has come off it's lows for the morning (after starting the morning higher) and are currently sitting Down 13bps.  This is enough for Lenders to come out with worse pricing on their Rate sheets.  Yields are still sitting at 1.36%.

Please subscribe to my YouTube Channel at MikesDailyMarketRpt

Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

Daily Market Report 2/22/21

 http://MikesDailyMarketReport.com: Leading Indicators reported improvement of 0.5 for the month of January.  Stocks are a bit mixed this morning on the concern of higher Yields.  Stock valuations are coming into question, as the higher borrowering costs represents lower profits for Investors.  Inflation is also a concern, as the Fed may turn hawkish and raise rates and/or pull back on their Asset Purchases.  Meanwhile, MBS is still looking for any type of footing, as it continues it's decline (Down 36bps so far).  This has led Lenders to price in worse pricing for Mortgage Rates from last Friday.  At some point, we should be reaching a floor, which we can expect some sort of bounce back, but it is uncertain when we will hit that floor.  Yields are rising and have hit just under 1.36%.

Please subscribe to my YouTube Channel at MikesDailyMarketRpt

Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

Daily Market Report 2/19/21

 http://MikesDailyMarketReport.com: The Markit Manufacturing PMI dipped slightly in February, as it went from 59.2 in January to 58.5 in February; also, the Markit Services PMI improved in February, going from 58.3 in January to 58.9 in February.  Investors liked the data for both the Manufacturing and Services Sectors and prospects of an improving economy.  Existing Home Sales jumped up 0.6% in January, as they moved from (a lower revision in December) 6.65 million annualized units to 6.69 million.  However, that December revision was lowered from 6.76 annualized units.  Stocks are up on the Markit data posted today, along with the (already priced in) geopolitical aspects of more Government Stimulus, lower weekly average cases and rollout of vaccinations.  However, MBS is taking another BIG hit this morning (similar to Monday), as it keeps sliding and Lenders keep re-pricing rates for the worse.  It's currently Down 38bps.  Yields have been climbing higher and trying to break above another Technical Level.  It's sitting just a hair under 1.35% now.

Please subscribe to my YouTube Channel at MikesDailyMarketRpt

Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.

Daily Market Report 2/18/21

 http://MikesDailyMarketReport.com: Housing Starts pulled back in January, as December's data was revised higher to 1.68 million annualized units; and it dipped to 1.58 million in January.  However, Building Permits jumped up, from 1.704 million in December to 1.881 in January.  This is future Housing Starts.  Manufacturing in the Philadelphia area dipped a bit in February, as the Philly Fed Index dropped from 26.5 in January to 23.1 in February.  Jobless Claims took a few steps back in progress, as last week's report was revised higher to 848k (from 793k); and this week's report ccame in at 861k (about 100k higher than forecasts).  Stocks are Down again today.  Investors are running out of any catalysts to push stock prices higher (as most of the geopolitical events are already priced into the Markets); but Yields have been rising, and is a concern for higher costs (inflationary) for consumers and businesses.  MBS is currently Down 6bps, but were down much more early on.  Most Lenders priced in their Mortgage Rates with worse pricing (similar to Tuesday's pricing), as most of yesterday's gains were lost when they released their ratesheets.  Yields are currently sitting just under 1.29%, as they touched the 1.30% range earlier on.

Please subscribe to my YouTube Channel at MikesDailyMarketRpt

Also, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you, then please direct message me.