http://MikesDailyMarketReport.com: Retail Sales had a big miss in July, as it dropped 1.1%. Part of the blame is being placed on Amazon moving up it's Prime Day to June, Delta variant and Inflation. However, Investors had a bigger drop in mind (part of the whisper numbers), as we'll touch in bonds/MBS' reaction to this news. Industrial Production spiked to 0.9% in July; which is obviously good news! However, Home Builders aren't so confident in August, as according to NAHB Home Builders Index, dropped from 80 to 75. Lastly, Business Inventories picked up by 0.8% in June, as businesses prepare for workers to come back to work. Stocks are nosediving today on the Retail Sales data. China announced more restrictions on gathering private data on Tech companies, as they continue with sweeping reforms with various businesses. MBS started up higher in the day, but dropped on the Retail Sales report. We're currently Down 3bps; however, some east coast Lenders may have repriced for the worse (as they would have priced better with the early ratesheets). Pricing for Mortgage Rates should look similar to pricing after Friday's and yesterday's closing (as we're more or less moving in a sideways pattern). A comment about Retail Sales and MBS is that typically, this big of a disappointment would be good for MBS, but as I alluded to the whisper numbers having a bigger drop in mind, then it affected MBS in a negative manner today. Meanwhile, Yields have slid below in between 2 new Technical levels; and sitting just a bit under 1.25%.
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