Wednesday, June 23, 2021

Daily Market Report 6/23/21

 http://MikesDailyMarketReport.com:  The IHS Markit PMI released it's 2 reports: Manufacturing and Services.  The Services dropped from 70.4 in May to 64.8 in June; however, it's Manufacturing rose from 62.1 in May to 62.6 in June.  New Home Sales dropped 5.9% in May, as it's April numbers were revised lower (from 863k seasonally adjusted annualized units to 817k).  In May, it was reported down to 769k.  All of these reports today indicate an ongoing issue with labor shortages.  Stocks are in Mixed Territory, as the DOW is barely in the Red.  The Market didn't have much impact from Fed Chair Powell's Testimony yesterday, as both he and the other Fed Speakers tip-toed along the same message.  MBS is currently Down about 5bps, which isn't enough for any changes to our pricing for Mortgage Rates (compared to yesterday's close).  Yields climbed back above the Technical level and sitting at 1.49%.  There will be a 5 year Treasury Auction today (at 10am PST) that may have an Impact with MBS Market.  If the Auction goes well, then we may find some improvement with Mortgage Rates today; however, the inverse may happen, if it doesn't go well.  Stay tuned!

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, June 22, 2021

Daily Market Report 6/22/21

 http://MikesDailyMarketReport.com:  The Existing Home Sales dropped in May from 5.85 million annualized units in April to 5.80 million.  However, this is better than the 5.72 million forecast.  Stocks are Up again today before Fed Chair Powell testifies before the House Sub-Committee this afternoon.  He did release an early statement that was similar to Fed Williams' comments yesterday on the timeline of a ratehike.  It was stressed that the Fed feels that inflation is transitory and they will take the time to make sure Jobs are in stable ground before raising rates, which will take time (in other words, it won't come as soon as many Investors feared).  MBS is Up 16bps and back to same levels as Friday's close; so, Mortgage Rates have improved.  Yields had broke above the Technical level yesterday and is testing it again, as it sits just below 1.48%.

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, June 21, 2021

Daily Market Report 6/21/21

 http://MikesDailyMarketReport.com:  There are no Economic data on the calendar to report today; however, there are a number of other data throughout the week that may  make some impact (including PCE, GDP, Housing data, etc...).  The Markets are following last week's hawkish tone set by the Fed and it's members.  Stocks are in Positive Territory today after a lot of selling last week.  Portfolio Managers are repositioning their assets as they head into a new Quarter.  We have a few Fed Members speaking today, including Bullard whose comments disrupted the Markets on Friday.  Investors may be interested in Fed Williams' thoughts, whom will be speaking later this afternoon.  Currently, MBS is Down 19bps (off from much earlier lows); but, it's enough for some worsening in Mortgage Rates (compared to Friday's close).  This has to do a bit with money moving from Bonds to Equities.  Yields are trying to claw it's way back up and so far are just over it's Technical Ceiling (1.48%).

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, June 18, 2021

Daily Market Report 6/18/21

 http://MikesDailyMarketReport.com:  Today is a new Federal Holiday, Juneteenth, so there are no economic data to report; however, the Markets are still open.  Stocks are Down this morning, based on 2 events.  The first event is the Quadruple Witching, which Portfolio Managers reposition their portfolios, as we approach another quarter.  Also, there were some hawkish comments by St Louis Fed Bullard, which he stated that the Fed may raise rates as soon as next year (much earlier than expected).  We had some really big swings in both the MBS and 10 year Treasuries this morning, which last all but 10 minutes.  MBS opened a little higher than yesterday's close, but it had a quick drop of about 25bps.  Almost as quick, it rebounded.  As of creating this report, it was Unchanged levels.  So, technically speaking, Mortgage Rates remain Unchanged.  Yields started lower than yesterday's close, but then spiked north until it reached the 100 DMA (around the 1.52% range) and has subsided (even testing a strong Technical floor) at 1.46%.

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, June 17, 2021

Daily Market Report 6/17/21

 http://MikesDailyMarketReport.com:  Manufacturing in Philadelphia region slipped a little bit in June, as the Philly Fed Index came in at 30.7 (prior, it was at 31.5).  The Initial Jobless Claims rose back above 400k, as it was reported that 412k people applied for first time benefits last week.  Also, Leading Indicators showed 1.3% improvement in May.  Again, Stocks are in Mixed Territory (NASDAQ lone index in Positive).  Investors are readjusting their positions after the FOMC Announcement yesterday, which saw all the Markets drop.  It came in a little more Hawkish; however, too many investors put too much emphasis on the Dot Plot, which Powell cautioned that it's too early to really tell when they'll raise rates, as they want to see much more improvement before even thinking about the next move.  Meanwhile, MBS has recovered about half it's losses (from yesterday's abysmal -52bps drop) and is currently Up 30bps.  It's steadily climbing back to pre-FOMC Announcement, so we'll see if it's fully recovered today, or will need more time.  Yields have already moved to pre-FOMC Announcement and is sitting just under 1.49%.  This could help pave the way for MBS!  Mortgage Rates improved from yesterday's close, but not yet back to the pricing before the announcement, which we're approximately a 0.25 point difference.

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, June 16, 2021

Daily Market Report 6/16/21

 http://MikesDailyMarketReport.com:  Housing Starts rose to 1.572 million annualized units in May, as it's April numbers were reduced from 1.569 million to 1.517 million.  It's counter-part, Building Permits dropped to 1.681 million annualized units, as confidence with Home Builders sours.  They're still facing issues with labor, rising prices and short supply with materials.  Stocks are in Mixed Territory this morning, as Investors brace for the FOMC policy statement around 11:30am PST.  Investors will be looking for clues to the Fed's thoughts on inflation, jobs/economy, tapering and review Dot Plot for future projected rate hikes.  MBS is little changed, as it's currently Up 3bps; and Mortgage Rates remain Unchanged.  Yields moved slightly too, as it sits just under 1.49%.  Now, it could get very choppy after the FOMC announcement and Investors review the wording and Dot Plot.  This volatility could extend into tomorrow morning.  So, be careful!

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, June 15, 2021

Daily Market Report 6/15/21

 http://MikesDailyMarketReport.com:  We got a long list of economic data to report today, so be prepared.  The inflation data for the Wholesale sector continues to rise, as the Producer Price Index (PPI) rose 0.8% in May; and the Core PPI (excludes food and energy) rose 0.7%, bringing it's YoY from 4.1% in April to 4.8% in May.  Retail Sales in May dropped 1.3%; however, it's April numbers were revised higher, from 0.0% to 0.9%.  When you exclude "big ticket items", like Autos, then it dropped only 0.7% in May; and it's April numbers were revised higher too, from -0.8% to 0.0%.  Manufacturing in the NY region slowed a bit in June, as the Empire State Index dropped from 24.3 in May to 17.4 in June.  Capacity Utilization rose to 75.2%; and Industrial Production rose 0.8% in May (due to Auto production).    Home Builders are losing confidence, as the NAHB Home Builders Index dropped from 83 in May to 81 in June, as they face delays and rising costs due to the lack of materials, rising costs and finding workers.  Business Inventories dropped 0.2% in April.  Stocks are all in Negative Territory today.  Investors are shrugging off the economic calendar and are focused on the upcoming FOMC, which begins today.  The Fed will provide their policy statement tomorrow, so be prepared for a choppy ride.  Investors are waiting for comments on Tapering, especially with the MBS purchases, as the Housing Market is on fire; Inflation -is it permanent or transitory (and estimate of when prices might normalize); and the jobs data.  MBS did most of their damage ahead of the Fed meeting yesterday and is currently Down about 2bps; so, Mortgage Rates remain Unchanged from yesterday's pricing (after close of Markets).  Yields are testing it's 100 DMA again, which is holding it below at 1.50%.

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.