http://MikesDailyMarketReport.com: Housing Starts dropped by 14.4% in May, while Building Permits dropped by 7.0%. The Philly Fed Index, which measures manufacturing in the Philadelphia area, dropped to -3.3, which is contraction. This is the second manufacturing index to report contraction this week (the other is for the NY area). The Initial Jobless Claims reported 229k applying for benefits last week. We're starting to see potential for uptick in job losses, so we'll need to monitor this, as well as, manufacturing. The BoE reported a .25% rate hike today, which was expected; but, the Swiss National Bank reported a 0.5% rate hike, which surprised the Markets. Both Stocks and MBS are down today. MBS started the morning down much lower, based on the actions of the European Central Banks; however, they have improved from early trade. MBS is currently Down 39bps, so Mortgage Rates will come in a little worse compared to our rate sheets after close yesterday (which closed Up 131bps). Pricing is almost to the opening of Monday's trading, but still well off from last week's positioning. Yields are similar to yesterday's positioning, at 3.33%.
**As Mortgage Rates spiked over 6% over past few days, ask me about our 7/6 ARM, which may be a good alternative for you or your client. Contact me today!**
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.