Friday, October 22, 2021

Daily Market Report 10/22/21

 http://MikesDailyMarketReport.com:  The IHS Markit PMI released their October Manufacturing and Services data today.  The Manufacturing dipped a little bit to 59.2; while the Services rose to 58.2.  Any number above 50 for these indices indicates expansion/optimism.  Stocks are Down today, after being in positive territory to start the day.  However, a speech by Fed Chairman Powell jolted both Markets a bit.  He indicated that the Fed is on pace to taper this year; it's too early for any rate hikes; and that inflation will drag into 2022.  This will be his last speech prior to the FOMC in about 2 weeks.  We'll find out if they will begin tapering immediately or (maybe) in December.  In other news, Evergrande made their past due payments to their foreign bondholders today.   Also, Congress is still negotiating the Spending Bill.  Currently, MBS is Up 9-11bps, which is off it's earlier highs (prior to Fed Chair's speesh).  Lenders came out with a little better pricing this morning; however, yesterday, MBS finished Down 36bps; so, we're better than yesterday's close, but not yet to it's opening levels.  As such, Lenders had a few price changes for the worse yesterday.  The good news is that Yields are falling a bit today (down to just under 1.64%, after touching 1.70% yesterday). This might provide some relief to MBS to rally a bit more and get back some of our losses.

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.



Thursday, October 21, 2021

Daily Market Report 10/21/21

 http://MikesDailyMarketReport.com:  The Philly Fed Index dropped from 30.7 in Sept to 23.8 in October.  This index measures the business activity in the Philadelphia area.  Jobless Claims continued to decline, as they report only 290k applied for first time benefits last week. Remember those whom lost there jobs due to refusing the vax mandates won't be included with these numbers.  We don't know yet how much of an impact that may be.  Existing Home Sales jumped up 7.0% in September to 6.29 million seasonally adjusted units.  Lastly, the Leading Economic Indicator rose only 0.2% in September.  Stocks are a bit mixed today, as NASDAQ is lone index in Positive Territory (unlike yesterday, where it was reversed).  Investors are reviewing Q3 Earnings Reports, which approximately 86% have been reporting above expectations.  Fed Speakers appear to be bracing us for rate hikes next year as inflation persists.  Also, Investors are keeping a close eye on the Spending Bills in Congress, as they are at an impasse.  MBS is currently Down 14bps and Lenders will tend to show worse pricing today, which may translate to about 0.125% to the interest rate.  This is on top of the ever-stopping rise with Yields, as they broke another level and are testing another.  They're holding just under 1.67%.

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.



Wednesday, October 20, 2021

Daily Market Report 10/20/21

 http://MikesDailyMarketReport.com:  Nothing on the Economic Calendar today, but the Fed Beige Book was released earlier today, which stated the following:

*economy is growing at modest to moderate pace

*low supply of workers across the country

*it's being reported there is significantly elevated prices around the US

So, Inflation, lack of supplies and lack of workers are suppressing the economy from reaching it's full potential.  Many Investors are speaking out on the inflation not being transitory and being more permanent, especially as energy prices quickly escalate and get absorbed into consumers' costs.  Stocks are in Mixed Territory, as NASDAQ remains lone index in the Red.  They're being heavily influenced with the higher yields, as they continue to try and head north.  They're currently sitting just under 1.64%.  There are a few Fed speakers today, as we approach the FOMC in about 2 weeks.  The question might be if the Fed begins tapering in November or December.  This will have an impact in both the Stock and Bond Markets, as liquidity shrinks.  Meanwhile, MBS is largely unchanged, as it's up only 3bps.  So, there is no change for Mortgage Rates, as they've been in sideways pattern these 3 days. 

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.



Tuesday, October 19, 2021

Daily Market Report 10/19/21

 http://MikesDailyMarketReport.com:  Housing Starts dropped 1.6% in September, as they reported only 1.555 million seasonally adjusted units were started.  If you look within the numbers, then most of the numbers were due to a drop with multifamily units (whereas, single family homes were within expectations).  Also, Building Permits dropped 7.7% in September, bringing it down to 1.589 million seasonally adjusted units.  Yesterday, we had an increase with Home Builder Confidence, but they did state that supply chain and labor shortages are creating delays with their plans.  Meanwhile, Stocks are Up on better than expected Q3 Earnings Reports.  Markets will be watching a few different Fed Speakers, so there may be some movement based on what they say.  MBS started the day off higher, then quickly dropped.  Now, it's about unchanged levels.  MBS is currently Down 2bps.  The movements today weren't  enough for Lenders to make any changes to their pricing, so Mortgage Rates should be about the same as yesterday's close.  However, Yields are climbing again (up to 1.63%) and could add some additional pressure to MBS.  This is something we'll need to monitor.

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.



Monday, October 18, 2021

Daily Market Report 10/18/21

 http://MikesDailyMarketReport.com:  Industrial Production continued to drop in September, as it was reported a 1.3% drop; meanwhile, it's August report was revised from an increase of 0.4% to a drop of 0.1%.  Investors received a pleasant surprise, as the NHIB Home Builders Index rose 4 points to 80.  This index measures the confidence level for Home Builders.  Meanwhile, stocks are trading in Mixed territory, as they continue to review Q3 Earnings Reports and other data.  China reported a significant drop in their Q3 economic data, as it dropped from 7.9% to 4.9%.  This had early trading in negative territory, but had subsided since then.  Meanwhile, inflation is still a concern, as energy prices continue to rise (price of a barrel of oil is now over $81).  MBS was Down much more earlier in the trading day, but has subsided to being Down 9bps currently.  Most Lenders priced in approximately a hit of 0.25% to the Mortgage Rates earlier today, but have shown some price improvements (now down only about 0.125% from Friday's pricing).  Yields have spiked again, as it topped 1.60% earlier on; and now is just a hair under it.

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.



Friday, October 15, 2021

Daily Market Repot 10/15/21

http://MikesDailyMarketReport.com:  Retail Sales came in strong for September for the 2nd consecutive month, as it reported a 0.7% increase (higher than the -0.2% forecasts); and even when you exclude Autos, it was strong (0.8%)!  Stocks are really liking this release, along with continued positive Q3 Earnings Reports being released.  The Empire State Index indicated that manufacturing slowed a bit in October, as it dropped from 34.3 in September to 19.8 for October.  Also, the Consumer Sentiment dropped a little bit in October, as it went from 72.8 to 71.4.  MBS is Down 13bps this morning on the positive economic data being published today and being pressured further with rising Yields, which has spiked back above the 2 technical levels that it slipped thru during this week.  Yields are up to 1.57% (yesterday, it was around 1.52%).  Mortgage Rates appear to have climbed about an .125% to the rate today on the news.

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.

 


Thursday, October 14, 2021

Daily Market Report 10/14/21

 http://MikesDailyMarketReport.com:  The Initial Jobless Claims came in at 293k last week, as this is the first time since Pandemic that we saw this data in the 200k+ range.  This is helping the Markets.  Lastly, the Producer Price Index (PPI) rose 0.5% in September, while it's Core PPI (excluding food and energy) rose only 0.2% (which brings it's YoY from 6.7% in August to 6.8% in September).  The PPI measures inflation for the Wholesale sector and doesn't always carry too much weight, like CPI or PCE.  Stocks are Up today on the Initial Jobless Claims data and good earnings reports from Banks, as we begin the release of Q3 Earnings Reports.  Meanwhile, MBS is Up 11bps (coupled with yesterday's close of 23bps) has Lenders out with better Mortgage Rates today (compared to yesterday morning).  Also, Yields are slipping below another Technical Ceiling and is around the 1.52% range.

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.