Daily Market Report 1/31/22

 http://MikesDailyMarketReport.com:  The Chicago PMI, which gauges manufacturing within the Chicago region, reported an increase to 65.2 in January.  Anything above 50 is considered expansion.  Stocks are trying to improve today, as January was a hard month for them.  The main factor for Investors is the uncertainty of the vague Fed policy changes moving forward in 2022.  There are forecasts of possible rate hikes for each of the next Fed meetings, but there's also the possiblity of an increase in the increment of the rate hike.  Typically, the increments are based on 0.25%, which possibly could move to 0.5%.  Just recently Atlanta Fed Bostic stated that he is in favor of 0.5% rate hike over 3 meetings; and a few others (like SF's Daly and KC's  George were more vague on specific moves the Fed will make).  MBS started the morning lower, but has since improved and Lenders are improving their pricing to match Friday's close; so, Mortgage Rates are currently Unchanged.  Yields started higher, as Investors started to buy while they were in the 1.80% range and drove Yields lower; and currently just under 1.78%.  It helped to push Yields back into the new range that Friday's close helped to attain.

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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.

Daily Market Report 1/28/22

 http://MikesDailyMarketReport.com:  We have several important data to report from the Economic Calendar today.  We'll start off with the Employment Costs, which rose 1.0% in the 4th Quarter.  This has been an important component for inflation.  Personal Income rose 0.3% in December; while, Consumer Spending dropped 0.6%, which is being attributed to the omicron variant.  The Personal Consumption Expenditure (PC) rose 0.4% in December with it's YoY rising from 5.7% in November to 5.8%.  The Core PCE (which excludes food and energy) rose 0.5% in December; while, it's YoY rose from 4.7% in November to 4.9% in December.  The Core PCE is the Fed's favorite gauge for for inflation; and it's also called "real" inflation.  Lastly, the Consumer Sentiment dipped from 68.8 in December to 67.2 in January.  Stocks are rebounding a bit today, after several heavy selling days.  Apple came in with good news; however, for the most part, many have been disappointing for investors.  Investors have been concerned over the rate and increments of the upcoming rate hikes.  This hasn't been boding well for stocks, but has been helping (to some extent) to MBS/Bonds.  MBS opened lower this morning, which led to earlier Lenders to price worse.  However, the  Market shifted more favorably within a few hours of trading and are Up 8bps.  So, those earlier Lenders are re-pricing for the better.  The pricing for Mortgage Rates will be comparable to what we saw after yesterday's close (so, mostly Unchanged levels).  Meanwhile, Yields started the morning in the middle of it's range (around 1.85%) and is currently testing it's Technical floor; and sitting at 1.78 currently.

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.

Daily Market Report 1/27/22

 http://MikesDailyMarketReport.com:  We have several important economic data being reported today, which we'll start with the initial Q4 GDP, which came in pretty hot, at 6.9%.  However, Durable Goods dropped 0.9% in December; but, if you exclude Transportation (which have large numbers and can skew the overall data), then it rose by 0.4%.  The weekly Initial Jobless Claims dropped by 30k from last week's numbers to 260k; however, we did see Continuing Claims rise from last week too.  Pending Home Sales dropped 3.8%, which was larger than forecasts, and that led to a 117.7 seasonally adjusted annualized units for the month  of December.  After the Fed's announcement yesterday, then both Stock and MBS Markets had a big selloff.  MBS dropped 63bps.  It was more of what Chair Powell didn't say.  Investors are thinking that there may be a rate hike for every FOMC, which means there could be as much as 5 rate hikes this year.  Also, he didn't exclude the possibility that any of the rate hikes could be as much as 0.5%, compared to the usual 0.25% increments.  Lastly, Chair Powell stated that the Balance sheet moving forward long-term will be more Treasuries, which isn't good for MBS.  Investors have slowly moved some of the investment dollars to MBS/Treasuries today, as Stocks are still in the Red today.  MBS has regained about half it's losses yesterday and Up about 28bps.  So, Mortgage Rates are a little better compared to yesterday's close.  Yields broke above it's Technical Ceiling (now floor) yesterday and tested a new ceiling, which has been fairly strong (it held last week) at the 1.87% range; and today, it was testing the floor earlier on, and is currently at 1.80%.

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.

Daily Market Report 1/26/22

 http://MikesDailyMarketReport.com:  Even though we're awaiting the Fed's Announcement at 11:15am PST, we still have New Home Sales data for the month of December, which rose by 11.9% to 811k seasonally adjusted annualized units.  Markets are awaiting the Fed's Announcement and positioning themselves ready for anything.  Stocks dropped a bit last week, which saw NASDAQ enter Correction Territory.  The disappointing Q4 Earnings Reports, the escalating tensions with Ukraine/Russia, high inflation are all factors too, but Investors appear to be more focused on policy stance moving forward.  The taper should end around March, which it's being widely expected to see our first rate hike thereafter; then further reduction of the Balance sheet 3-6 months later.  There are some investors hoping last week's sell-off in the Markets will soften the Fed's stance, but chances of that happening are slim (especially, as the Fed has been accused of being too far behind on their actions in staving off inflation and their "transitory" rhetoric).  Meanwhile, MBS is Up 3bps, so Mortgage Rates remain Unchanged from yesterday's close.  Yields are sitting in the middle between it's 2 technical lines; and awaiting it's next move (after the Fed's announcement).  It's just under 1.79%.

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.

Daily Market Report 1/25/22

 http://MikesDailyMarketReport.com:  Today, we have 2 HPI (Home Price Index) reports.  The first is Case Shiller HPI, which gauges the 20 largest US Markets.  It rose 1.2% MoM in November and dipped 0.2% to 18.3% YoY.  However, FHFA HPI rose 1.1% MoM in November and it's YoY rose 0.1% to 17.5%.  FHFA follows conforming loans.  Lastly, Consumer Confidence dipped from 115.2 in December to 113.8 in January.  The 5 year and 7 year Treasury Auction went well (video was just completed shortly after Auction results).  However, while creating the video, we hadn't seen much reaction.  The FOMC started their 1st day for their 2 day meeting, which we'll receive their announcement tomorrow.  All eyes and ears will be waiting for the announcement, as most investors are on edge; and Markets are highly volatile, as a result.  Yesterday, MBS closed closer to their opening and off their earlier highs.  This is most likely a result in a HUGE turn-around with stocks yesterday, as the DOW reversed by 1200 points.  Today, stocks are down and MBS is currently Up around 13bps.  Mortgage Rates are pricing in closer to yesterday's earlier (before spike to highs) pricing.  Many Lenders didn't reprice for worse when the Market declined late in the day, so that pricing is being shown with today's pricing.  Meanwhile, Yields bounce off yesterday's Technical floor to above it's Technical Ceiling and now it's acting as a floor.  Today, that new floor was tested, but has been slowly rising again.  It's currently just under 1.79%.

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.

Daily Market Report 1/24/22

 http://MikesDailyMarketReport.com:  The Markit PMI released both their Manufacturing and Services data for the month of January.  Anything above 50 is considered expansion.  Manufaturing dropped from 57.7 in December to 55.0 in January; and Services dropped from 57.6 in December to 50.9 in January.  We'll need to keep our eyes on this this (especially Services), as both industries dropped and may be trending in this direction.  Tomorrow will begin the FOMC, which will be the highlight in focus this week.  Also, later this will be the Fed's favorite gauge for inflation (PCE) will be released.  The Markets are preparing for the Fed's Announcement this coming Wednesday.  Stocks are dropping today, as they prepare, but also, taking some of it's queue from disappointing Q4 Corporate Earnings Reports.  MBS is benefitting, they're now Up 30bps.  This means that Mortgage Rates improved from Friday's close.  Meanwhile, Yields broke below another Technical floor and now testing another (strong) Technical floor.  We'll need to watch this, as the last time this Technical floor was challenged (prior week), then it sprung up higher.  This could be a prelude, so stay tuned!

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.

Daily Market Report 1/21/22

 http://MikesDailyMarketReport.com:  The Leading Economic Indicator Index rose 0.8% in December, after it's November's number was revised from 1.1% lower to 0.7%.  Next week will provide plenty of data, such as Housing data, GDP and Consumer Inflation (with the Fed's favorite gauge for inflation -PCE).  Also, Investors will be waiting on the FOMC to finish on Wednesday and listen for any new information on the Fed's tightening policy, including it's reduction of it's Balance sheet.  Meanwhile, Q4 Corporate Earnings are being released and it seems like they're underperforming, as stocks not only are declining for today, but the week.  A few indices are approaching correction territory.  MBS is currently Up between 16-19bps, which will be enough for Lenders to come out with better pricing for their Mortgage Rates.  Yields broke below it's Technical floor and testing a new Technical floor.  It's currently sitting just under 1.76%.

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.