CHM Blog

Last week April CPI and PPI increased more than thought by wide margins. The Iran situation is no closer to being resolved than when it started two months ago. The US debt, never out of focus, has risen again with traders. It all means inflation is going to increase and any idea of Fed lowering rates has evaporated.

This morning some improvement, it is all technical, no changes in the underlying fundamentals.

This week’s economic releases don’t carry the load like last week’s inflation data.

• Monday:

May NAHB housing market index.

• Tuesday:

April housing starts and permits (starts 1.410 mil from 1.502 mil; permits 1.380 mil from 1.372 mil); April pending home sales (+0.9%).

• Wednesday:

Weekly MBA mortgage applications, FOMC minutes from the April meeting.

• Thursday:

Weekly jobless claims, May Philadelphia Fed business index (15.0 from 26.7).

• Friday:

Final May University of Michigan consumer sentiment index (48.2 unchanged), the bond market will close at 2:00 pm, stocks trade normal hours. All markets closed next Monday.

PRICES @ 10:00 AM

10 year note: 4.57% -2 bp

5 year note: 4.22% -4 bp

2 year note: 4.05% -3 bp

30 year bond: 5.11% -1 bp

30 year FNMA 5.5: @9:30 am 99.77 +11 bp (-9 bp from 9:30 am Friday)

30 year FNMA 6.0: @9:30 am 101.66 +11 bp (-4 bp from 9:30 am Friday)

30 year GNMA 5.5: @9:30 am 100.10 +7 bp ( 6 bp from 9:30 am Friday)

Dollar/Yen: 158.67 -0.11 yen

Dollar/Euro: $1.1655 +$0.0027

Dollar Index: 99.05 -0.23

Gold: $4,578.60 +$16.70

Bitcoin: 76,815 -1569

Crude Oil: $103.49 -$1.93

DJIA: 49,686 +160

NASDAQ: 26,282 +57

S&P 500: 7424 +9

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.