May 9th, 2017
Fannie Mae released its Home Purchase Sentiment for April, which signaled a rebound following the March dip. The Fannie Mae Home Purchase Sentiment Index (HPSI) increased 2.2 percentage points in April to 86.7. The report saw five of the six components within the index increase. The net share of Americans who reported that now is a good time to buy a home increased 5 percentage points, while those who felt is a good time to sell declined five percentage points. Digging deeper into the data, consumers also expressed confidence about the stability of their jobs.
Job openings increased modestly in March as the labor market continues to strengthen. The JOLTS, Job Openings and Labor Turnover Survey, report showed that there were 5.7 million openings on the last day in March increasing by 118,000. The report is closely watched by Fed Chair Yellen. Job openings were seen in the professional and business sectors along with state and local government education, while declines were seen in mining and logging.
Home foreclosures declined to their lowest level since 2007 as the housing sector continues to improve. CoreLogic reports that mortgages delinquent by 30 days or more, including those in foreclosure, made up 5% of the market share in February. CoreLogic went on to report that as of February 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.8% compared with 1.1% in February 2016. The serious delinquency rate, defined as 90 days or more past due including loans in foreclosure, was 2.2% in February 2017, down from 2.8% in February 2016.
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.
Commentary at the close: Lower Stock prices couldn't boost Bond prices in today's session due to the tepid demand for today's Treasury auction and hawkish Fed speak. There were no economic reports due for release today. The Fannie Mae 30-yr 3.5% coupon closed a bit lower by 6bp to end at 102.44 and off their worst levels. Stocks ended mixed. The Dow fell by 36.50 points to 20,975.78, the S&P 600 lost 2.46 points to 2,396.92, while the NASDAQ ended higher by 17.92 points to end at 6,120.58. WTI oil settled at $45.88/barrel, -$0.55. There are no major economic reports scheduled for release tomorrow.
|Tue, May 09 3:51 PM Stocks lower after report that North Korea will proceed with 6th nuclear test.|
|Tue, May 09 3:44 PM Stocks edging lower into the close of trading.|
|Tue, May 09 1:17 PM Fresh lows for MBS. 10-yr yield rises to 2.41%.|
|Tue, May 09 1:08 PM $24B 3-yr Note auction garners a "D" rating.|
|Tue, May 09 1:06 PM Fed's Rosengren says U.S. economy stronger than the rest of the world.|
|Tue, May 09 12:42 PM The Monthly Bond Rollover will take place after the close of trading this evening.|
|Tue, May 09 12:26 PM The S&P gives up its modest gain and trades to unchanged levels.|
|Tue, May 09 11:57 AM Though the losses are modest, MBS are now at session lows. Be on guard for further weakness.|
|Tue, May 09 11:48 AM Fed's George forecasts four rate hikes in 2017.|
|Tue, May 09 11:42 AM Fed's George says she supports gradual rate increases, wants Fed to begin to shrink its balance sheet in 2017.|
|Tue, May 09 10:57 AM CoreLogic: Foreclosures sink to lowest level since 2007.|
|Tue, May 09 10:24 AM MBS trade in a tight range with a slight bias to the downside. Stocks holding meager gains.|
|Tue, May 09 10:01 AM Job openings increase modestly in March as reported by the Job Opening and Labor Turnover Survey (JOLTS).|
|Tue, May 09 9:31 AM Stocks open slightly higher.|
|Tue, May 09 8:18 AM The Treasury will sell $24B 3-yr Notes today, results at 1:00 p.m. ET.|
|Tue, May 09 8:17 AM There are no economic reports scheduled for release today.|
|Tue, May 09 8:16 AM WTI oil at $46.28/barrel, near unchanged.|
|Tue, May 09 8:14 AM U.S. dollar index 99.38, +0.44.|
|Tue, May 09 8:13 AM The 10-yr T Note yield edges higher to 2.39%.|
|Tue, May 09 8:12 AM MBS open near unchanged as S&P futures rise as risk-on sentiment improves.|
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