CHM Blog

This morning markets began fractionally better with very little news over the weekend. This week’s calendar is thin on key data, the main event, the FOMC minutes from the June meeting. At the end of the meeting the policy statement was succinct, the minutes likely to be directly to the point also. The minutes will be released on Wednesday.

No market impacting news from US/Iran over the weekend.

Economic reports this week not as key as last week’s. Today June ISM services sector index 54.1 from 54.5, reported at 54.0. Tuesday May US trade deficit (-$78.7B from -$55.9B), 3 year note auction. Wednesday weekly MBA mortgage applications, FOMC minutes, 10 year note auction, May consumer credit +$17.5B from +$20.7B. Thursday weekly jobless claims (219K from 215K), June existing home sales (4.200 million from 4.17 million in May), 30 year bond auction.

The Fed’s new leader, Kevin Warsh, surprised markets at his press conference after the FOMC meeting three weeks ago stressing the Fed’s 2.0% inflation goal, since then the outlook for a Fed rate increase has gained momentum with inflation year/year core at 3.4% released on June 25th.

At 10 am June ISM service sector index, expected at 54.1, hit at 54.0.

The rest of the day should be relatively quiet.

PRICES @ 10:00 AM

10 year note: 4.48% unch

5 year note: 4.23% unch

2 year note: 4.14% unch

30 year bond: 4.99% +1 bp

30 year FNMA 5.5: @9:30 am 100.34 +3 bp (+12 bp from 9:30 am Thursday)

30 year FNMA 6.0: @9:30 am 102.14 +1 bp (+7 bp from 9:30 am Thursday)

30 year GNMA 5.5: @9:30 am 100.49 +2 bp (+7 bp from 9:30 am Thursday)

Dollar/Yen: 162.32 +0.96 yen

Dollar/Euro: $1.1412 -$0.0024

Dollar Index: 101.10 +0.25

Gold: $4,154.50 +$28.80

Bitcoin: 61,820 -898

Crude Oil: $68.48 -$0.21

DJIA: 52,755 -145

NASDAQ: 26,075 +243

S&P 500: 7515 +32

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.