Pacific Bay Lending
Tuesday, July 05, 2022
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Desmond Elder
Mortgage Advisor
CA Bureau of Real Estate #01350508
NMLS# 29360

 

Supervising Broker Pacific Bay Lending
CA Bureau of Real Estate #01874818
NMLS #318011

 

711 Grand Avenue, Suite 265
San Rafael, CA 94901
530.582.4238

 

Desmond@PacBayLend.com

 

tahoe truckee sacramento mortgage loan

 

www.NMLSconsumeraccess.org

 

Desmond Elder
Mortgage Advisor
CA Bureau of Real Estate #01350508
NMLS# 29360

 

Supervising Broker Pacific Bay Lending
CA Bureau of Real Estate #01874818
NMLS #318011

 

711 Grand Avenue, Suite 265
San Rafael, CA 94901
530.582.4238

 

Desmond@PacBayLend.com

 

tahoe truckee sacramento mortgage loan

 

www.NMLSconsumeraccess.org

   

Market Commentary

 
Updated on July 5, 2022 10:03:25 AM EDT

Mays Factory Orders data was posted late this morning, starting this week’s calendar of events. The Commerce Department announced a 1.6% rise in new orders at U.S. factories that exceeded expectations of a 0.5% increase. The larger increase is a sign that manufacturing sector activity was stronger than thought last month, making the data bad news for rates. Fortunately, this report isn’t considered to be highly important, allowing the recent positive momentum in bonds to continue.

We only have two more monthly reports to watch this week, in addition to the minutes from last month’s FOMC meeting. As we are seeing this morning, stock swings can come into play at any time. Generally speaking, stock weakness usually translates into bond gains and lower mortgage rates.

Tomorrow doesn’t have any relevant economic data scheduled but we will get the June 14-15th FOMC minutes at 2:00 PM ET. There is a possibility of the markets reacting to them, but I dont believe they will reveal a significant surprise that we did not get from the post-meeting statement, revised economic projections and press conference last month. Bond traders are looking for feelings about inflation and the size and frequency of planned rate hikes to control it. If there is a reaction, it will come during mid-afternoon hours tomorrow.

Overall, Friday is best candidate for most important day for rates due to the significance of the monthly Employment report, but tomorrow afternoon may also be noticeably active if the FOMC minutes show some surprises. While we likely will not see the movement in rates we saw last week, there a couple days that could bring some volatility. Therefore, it would be prudent to keep an eye on the markets if still floating an interest rate and closing in the near future.

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