http://MikesDailyMarketReport.com: The Consumer Sentiment dropped fairly significantly in May, as it went from 65.2 in April to 59.1 in May. This is an important index to gauge, as Consumer behavior affects whether the economy will weaken or strengthen; and if they're not feeling it, then it could eventually lead to a recession (and possibly, "Stagflation"). It's impact with the Markets today was only brief. Stocks are rebounding today after a week of beatdowns. As a result, MBS is currently Down 16bps. This is simply a movement of investment dollars flowing from MBS to equities, as Investors are buying low. But this also means for us that Mortgage Rates worsened slightly. If you watch the video, then you'll see that the 25 DMA held it's own with the MBS and pushed away the trend in the Japanese Candlestick. Similarly, Yields were briefly challenging it's 25 DMA, only pushed back above it today.
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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.
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