Friday, July 26, 2019

Daily Market Report 7/26/19

http://MikesDailyMarketReport.com: Q2 GDP rose 2.1%, which was higher than forecasts of 1.9%.  The Final Q1 GDP was 3.1%.  There were some good things out of this GDP, like the increase in Consumer Spending; however, the Businesses pulled back on their spending.  This report, along with (overall) positive Earnings Reports is pushing Stocks higher today.  MBS is Up 2bps, but has been testing it's double floor of support today.  There is no change in pricing for Mortgage Rates today.  Yields are currently sitting at 2.07%.  Next week can be a catalyst for MBS.  We have the FOMC, PCE and Jobs data.  Even though the Fed cuts rates next week, Mortgage Rates could have an adverse effect if PCE comes in hotter than forecast.  The arch enemy to bonds is inflation, as it erodes the bonds value.  So be cautious going into next week!

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