Monday, May 2, 2022

Daily Market Report 5/2/22  Manufacturing appears to be weakening, as inflation and supply chain issues mount, as the ISM Manufacturing PMI dropped from 57.1 in March to 55.4 in April.  Anything above 50 is still considered expansion with this index.  A side note, Construction Spending came in underwhelmingly at 0.1% increase for March.  Investors are positioning themselves ahead of the 2 day FOMC, which begins tomorrow and their announcement on Wednesday.  It is expected they'll raise the rates by 0.5% and begin with the Balance Sheet reduction.  There's some recent debate on the pace of the ratehikes, as some are projecting a 0.75% for both June and July meetings; whereas, some believe it will be 4 consecutive 0.5% ratehikes.  Also, they'll be seeking to find out more information on how they plan to reduce the Balance Sheet (or how aggressive they'll be).  MBS opened this morning with a BIG selloff, as Mortgage Rates rise again today.  The lows were around -36bps, but as I was doing the video, it subsided to -27bps.  Yields are quickly approaching the 3.00% level, as they are currently at 2.99%.

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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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