http://MikesDailyMarketReport.com: Construction Spending dropped 0.1% in May; however, it's April data was revised higher, from 0.2% to 0.8%. The ISM Manufacturing PMI dropped from 56.1 in May to 53.0 in June; coming in under forecasts of 54.9. Anything above 50 with this index indicates expansion. So, many PMIs were released globally (Asia and Europe) today, which seems to be a global trend that these are slowing down (some even contracted). This has Investors worried, as the Fed is on trajectory with a very hawkish policy path, which they feel will lead us into a recession (if we're not already in one, as some believe). As a result, investment dollars are flowing back into Bonds/Treasuries for safe keeping (or "flight to safety"). MBS closed Up 42bps (off from earlier highs), which set them up above the 25 DMA, but below 50 DMA (which they challenged earlier on). This means that we could see an improvement of approximately a 0.25% to our Mortgage Rates today. Yields settled in just under 2.89%; and off from it's earlier lows.
**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!**
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