CHM Blog

Daily Market Analysis October 23, 2020

October 23rd, 2020 9:45 AM by Richard Sardella MLO.100007700/NMLS 233568

Daily Market Analysis

Interest rate markets were unchanged early this morning with stock indexes better.

The stimulus discussions seem all but dead before the election, and even then, some think not until next year. If “these talks did not have a purpose and if we were not making progress, I wouldn’t spend five seconds in these conversations,” Mrs. Pelosi said. “We’ve been talking since mid-July. We’ve come a long way regarding compromises,” White House economic adviser Larry Kudlow told reporters yesterday. “We are still talking. That’s important.” Pelosi didn’t commit to putting a potential deal on the House floor for a vote before the election. “It depends on when we finish,” she said.

At 9:30 am ET, the DJIA opened +40, NASDAQ +16, S&P +10. 10 yr. at 9:30 0.87% +1 bp. 2.0 FNMA 30 yr. coupon at 9:30 -3 bps from yesterday’s close and -8 bps from 9:30 yesterday. 2.5 coupon -5 bps and -6 bps from 9:30 yesterday.

At 9:45 am ET, the preliminary October Markit PMI for manufacturing and services; composite consensus 54.2, as reported 55.5, manufacturing index expected at 53.2 reported at 53.3, servicing sector expected at 54.6 increased to 56.0. It’s the preliminary read for October but does point to improvements.

Mortgage rates are holding well considering the increase in the 10 yr. rate.

The 10 yr. note is headed to 0.90%, but it won’t likely get there in this run. The 10 yr. is presently overbought and will have to consolidate at these levels. Another flag to slow the rate increases; we are seeing and reading an increase from analysts and economists re-thinking the low interest rate belief. Low interest rates that the Fed wants doesn’t necessarily mean that long term rates can‘t move up and still be considered low on a historical basis.

PRICES @ 10:00 AM ET

10 yr. note: 0.86% -1 bp

5 yr. note: 0.37% -1 bp

2 Yr. note: 0.16% -2 bp

30 yr. bond: 1.67% -1 bp

Libor Rates: 1 mo. 0.149%; 3 mo. 0.214%; 6 mo. 0.246%; 1 yr. 0.335% (10/22/20)

30 yr. FNMA 2.0: @9:30 102.86 -3 bp (-8 bp from 9:30 yesterday)

30 yr. FNMA 2.5: @9:30 104.11 -5 bp (-6 bp from 9:30 yesterday)

30 yr. GNMA 2.5: @9:30 104.00 -22 bp (-9 bp from 9:30 yesterday)

Dollar/Yuan: $6.6781 -$0.0065

Dollar/Yen: 104.77 -0.12 yen

Dollar/Euro: $1.1841 +$0.0020

Dollar Index: 92.82 -0.14

Gold: $1908.70 +$4.10

Crude Oil: 40.61 -$0.03

DJIA: 28,393 +29

NASDAQ: 11,486 -19

S&P 500: 3462 +9

About Richard Sardella

Richard Sardella has been actively managing and providing services in the mortgage industry for over 27 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

About This Report And Disclosure Information

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.

Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on October 23rd, 2020 9:45 AM

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