Wednesday, June 14, 2017

Mortgage "Rates Drop to 8-Month Lows"

by Bill McBride on 6/14/2017 06:08:00 PM

From Matthew Graham at Mortgage News Daily: Rates Drop to 8-Month Lows

Mortgage rates fell convincingly today, though not all lenders adjusted rates sheets in proportion to the gains seen in bond markets (which underlie rate movement).  Those gains came early, with this morning's economic data coming in much weaker than expected.  Markets were especially sensitive to the Consumer Price Index (an inflation report) which showed core annual inflation at 1.7% versus a median forecast of 1.9%.  [30 Year fixed at 3.875%].
[T]he day ended with most lenders offering their lowest rates in exactly 8 months ( a few days following the presidential election).
emphasis added
• At 8:30 AM ET, The initial weekly unemployment claims report will be released. The consensus is for 242 thousand initial claims, down from 245 thousand the previous week.

• Also at 8:30 AM, The New York Fed Empire State manufacturing survey for June. The consensus is for a reading of 5.0, up from -1.0.

• Also at 8:30 AM, the Philly Fed manufacturing survey for June. The consensus is for a reading of 27.0, down from 38.8.

• At 9:15 AM, The Fed will release Industrial Production and Capacity Utilization for May. The consensus is for a 0.2% increase in Industrial Production, and for Capacity Utilization to increase to 76.8%.

• At 10:00 AM, the June NAHB homebuilder survey. The consensus is for a reading of 70, unchanged from 70 in May. Any number above 50 indicates that more builders view sales conditions as good than poor.