Weaker-than-expected Durable Orders and Pending Home Sales

April 27th, 2017

Commentary at the Close: MBS were able to edge higher today as Stocks hugged the flatline throughout the session. Weaker-than-expected Durable Orders and Pending Home Sales along with an increase in Weekly Initial Jobless Claims helped to support modestly higher Bond prices. The Fannie Mae 30-yr 3.5% coupon rose 9bp to end the session at 102.72. The Dow gained a meager 6.24 points to 20,981.33, the S&P 500 Index was up 1.32 points to 2,388.77, while the NASDAQ closed higher by 23.71 points to end at 6,048.93. WTI oil closed at $48.97/barrel, down $0.65. 10-yr T Note yield 2.29%. Tomorrow's economic data includes the first look at Q1 2017 GDP, Employment Cost Index, Chicago PMI and Consumer Sentiment. 

 

What Is Going On With Interest Rates?  #wigowir

Below is the news when it happened and the market’s reaction.  For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time.  When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad news.

Thu, Apr 27 4:19 PM Microsoft, Intel miss on revenue expectations.
Thu, Apr 27 4:05 PM Amazon, Alphabet (Google) beat earnings estimates.
Thu, Apr 27 3:56 PM Stocks close near unchanged ahead of earnings from Alphabet (Google), Intel and Microsoft. 
Thu, Apr 27 3:38 PM The S&P 500 continues to trade near unchanged.
Thu, Apr 27 3:17 PM The homeownership rate for Q1 2017 barely moved at 63.6%, from 63.5% in Q4 2016 and down from 63.7% last year, according to the first quarter report from the U.S. Census Bureau.
Thu, Apr 27 2:06 PM Past midday, MBS holding minimal gains, Stocks near unchanged.
Thu, Apr 27 1:42 PM The $28B 7-yr Note auction garners an "A" rating.
Thu, Apr 27 12:06 PM MBS trade in a tight range holding slim gains. S&P slightly lower, -2.18 points.
Thu, Apr 27 12:01 PM Bond markets await $28B 7-yr Notes being auctioned today, results at 1:00 p.m. ET, the last of this week's offerings.
Thu, Apr 27 10:39 AM MBS able to squeak into positive territory.
Thu, Apr 27 10:36 AM Freddie Mac reports that the 30-yr fixed mortgage rate rose to 4.03% this week from 3.97% last week with 0.5 in points and fees.
Thu, Apr 27 10:31 AM The Atlanta Fed cut its Q1 2017 GDP forecast to 0.2% from 0.5%. GDP will be released tomorrow.
Thu, Apr 27 10:30 AM Pending Home Sales -0.8% in March from +5.6% in February.
Thu, Apr 27 10:29 AM Stocks trading near unchanged.
Thu, Apr 27 8:44 AM Weaker-than-expected economic data fails to boost Mortgage Bond prices.
Thu, Apr 27 8:40 AM March Durable Orders 0.7% vs 1.2% expected, down from 2.3% in February.
Thu, Apr 27 8:39 AM Weekly Initial Jobless Claims up 14K to 257K vs 242K expected.
Thu, Apr 27 8:24 AM Before the bell, Comcast reported better earnings results, Bristol -Meyers beat and Ford also exceeded expectations but the auto maker's profits declined year-on-year due to higher costs and lower volumes.
Thu, Apr 27 8:22 AM Big earnings reports after the bell today with Alphabet (Google), Amazon, Intel and Microsoft reporting.
Thu, Apr 27 8:15 AM S&P futures showing modest gains after the new tax plan from the White House failed to impress investors.
Thu, Apr 27 8:14 AM Durable Orders, Weekly Initial Jobless Claims at 8:30 a.m. ET, Pending Home Sales at 10.
Thu, Apr 27 8:12 AM U.S. dollar index 99.00, near unchanged.
Thu, Apr 27 8:12 AM The Treasury will sell $28B 7-yr Notes today, results at 1:00 p.m. ET.
Thu, Apr 27 8:05 AM WTI oil $48.58/barrel, -$1.00.
Thu, Apr 27 8:04 AM 10-yr yield 2.31% from yesterday's close of 2.32%.
Thu, Apr 27 8:03 AM MBS look to open near unchanged after the ECB and Bank of Japan left monetary policy unchanged. In addition, President Trump will not withdraw from NAFTA (North American Free Trade Agreement).

Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

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