30 Years of
Mortgage Experience

NMLS# 3700

215-396-8101 or 877-214-9417

30 Years of
Mortgage Experience

NMLS# 3700

215-396-8101 or 877-214-9417

Tuesday, May 24, 2022
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Market Commentary

Updated on May 23, 2022 10:06:07 AM EDT

There is nothing of importance taking place today. Expect to see bonds move with stocks a good part of the day. If the major indexes move higher, bonds will likely remain in negative ground. However, if stocks retreat throughout the day, it is a safe bet that funds will move into bonds, possibly leading to a slight improvement to rates before closing.

The rest of the week brings us the release of five relevant monthly and quarterly economic reports for the markets to digest in addition to a couple of potentially relevant Treasury auctions and the FOMC minutes. None of the reports are considered to be key to the markets, although a couple are considered to be highly important.

Activities will begin late tomorrow morning when Aprils New Home Sales report is released. This data gives us a small measurement of housing sector strength and mortgage credit demand by tracking sales of newly constructed homes. Most sales in the U.S. are covered under the Existing Home Sales report that was posted last week, meaning this version probably will not have much of an impact on mortgage pricing. Analysts are expecting to see a decline in sales from Marchs level, indicating the new home portion of the housing sector softened last month. Bond traders would prefer to see a large decline in sales.

Overall, Wednesday is a good candidate for the most important day for rates due to the potential influence of the Durable Goods Orders report and FOMC minutes. Thursday also may be active if the GDP reading is revised noticeably. With so much going on this week, it would be prudent to keep an eye on the markets if still floating an interest rate and closing in the near future.

 ©Mortgage Commentary 2022

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