Here's your Daily Commentary report compliments of Jeff Drew and Star Mortgage!
Tuesday’s bond market is in negative territory after this morning’s primary economic release showed a much stronger than expected reading. The stock markets are showing losses with the Dow down 88 points and the Nasdaq down 12 points. The bond market is currently down 5/32, but I don’t think we will see much of a change in this morning’s mortgage rates due to strength late yesterday.
Today’s big news came from the Institute for Supply Management (ISM), who posted their manufacturing index for August late this morning. They reported a reading of 52.9 that was stronger than analysts had expected, indicating manufacturer sentiment is growing. This was the first time this index was above 50 since January 2008. That is considered bad news for bonds and mortgage rates because it points towards a strengthening economy. However, a note in the report says that manufacturers are not planning on hiring new workers anytime soon. This helps support the theory that the job market will remain weak for some time, likely preventing a rapid economic recovery. The result was a minimal impact on this morning’s bond trading and mortgage rates.
Tomorrow brings us three events for the markets to digest. The first is the revision to the 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show a downward change from the previous estimate of a 6.4% annual pace. Forecasts are currently calling for …..
To read the rest of the story click on “mortgage”: mortgage
©Mortgage Commentary 2009
* Please note that this information reflects just one opinion on the current market. If you are considering a purchase or refinance and have a mortgage rate and monthly payment you are comfortable with you may want to consider locking that mortgage rate. It is very difficult to predict the market in these very volatile times. Most lenders have a mortgage rate renegotiation policy. Contact Jeff Drew for details. Jeff@StarMortgage.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment