http://MikesDailyMarketReport.com: Retail Sales declined a second continuous month in December, as it declined by 1.1%; as it's November's numbers were revised from +0.3% to -0.1%. Markit Manufacturing PMI dropped from 56.7 in November to 56.5 December; and it's Markit Services PMI dropped from 58.4 to 55.3. The Services Industry took a pretty big hit with the renewed lockdowns, as the Markit report indicates. The NAHB Housing Market Index dropped from 90 in November to 86 in December. This report is a survey by Home Builders, which indicates their confidence in the economy. Lastly, the Business Inventories rose by 0.7% in October. Stocks are trading in Mixed Territory this morning, as the Markets await news of 2 very important events (the FOMC announcement/statement and Congressional Stimulus Package). The Fed will make their announcement at 11am PST. We don't expect really any change; however, we're looking for any possible changes to their Asset Purchase Program. If they abstain, then it could hurt Mortgage Rates (especially, if a Stimulus Package is passed). If they increase it, then it will help to offset the Stimulus Package effect. It's appearing that Congress is nearing a deal on the Stimulus Package, which some are saying that it could pass as early as today. Stay tuned! This could get bumpy for the Markets, especially for Mortgage Rates today! Speaking of Mortgage Rates, MBS are currently Down 8bps. They have fallen below it's 25 DMA and have tested it's 50 DMA, as well. This downturn, has led most Lenders to worsen their pricing from yesterday's pricing. Yields have climbed up (even hitting near 0.96%), but are off it's earlier highs at just under 0.93%.
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