December 27th, 2022 10:03 AM by Richard Sardella MLO.100007700/NMLS 233568
This week’s economic calendar is thin with just two data points of import, Nov pending home sales on Wednesday and Dec Chicago purchasing mgrs. index on Friday.
China lifted most all COVID restrictions. Crude oil increasing with weather issues, Texas refineries closed and China opening. More than a third of Texas Gulf Coast refining capacity was shut over the past few days, including the two biggest plants in the US.
What a mess if you were traveling over the holiday; thousands of flights cancelled, and it won’t get better for another couple of days. Southwest saying the airline will operate just over one-third of its flights Tuesday and Wednesday as it tries to recover from a meltdown that stranded thousands of customers.
Inflation is slowing, all recent data confirms inflation has seen its worse. CPI, PPI, PCE all lower than the prior months. The Fed still however ready to keep increasing rates to push inflation back in its box at 2.0%. It is an uphill fight; inflation isn’t going to drop back to 2.00% in 2023. Mortgage rates through the first half of 2023 should hover between 6.0% and 6.5%, if rates fall below 6.0% the US will be in recession; some believe we are already there.
At 9:30 am the DJIA opened +67, NASDAQ -38, S&P -4. 10 yr. at 9:30 am 3.83% +8 bps. FNMA 5.5 30 yr. coupon at 9:30 am -16 bps and -9 bp from 9:30 am Friday.
PRICES @ 10:00 AM
10 yr note: 3.81% +6 bp
5 yr note: 3.90% +4 bp
2 Yr note: 4.37% +5 bp
30 yr bond: 3.90% +8 bp
Libor Rates: 1 mo 387%; 3 mo 4.726%; 6 mo 5.153%; 1 yr 5.444% (12/23/22)
30 yr FNMA 6.0: @9:30 am 101.67 -6 bp (-8 bp from 9:30 am Friday)
30 yr FNMA 5.5: @9:30 am 100.53 -16 bp (-9 bp from 9:30 am Friday)
30 yr GNMA 5.5: @9:30 am 100.55 -14 bp (-1 bp from 9:30 am Friday)
Dollar/Yuan: $6.9648 +$0.0026
Dollar/Yen: 133.39 +0.51 yen
Dollar/Euro: $1.0628 -$0.0008
Dollar Index: 104.31 -0.01
Gold: $1813.90 +$9.70
Bitcoin: 16,773 -48
Crude Oil: $79.89 +$0.33
DJIA: 33,139 -65
NASDAQ: 10,372 -126
S&P 500: 3823 -22
Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.
All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.