CHM Blog

July producer prices at 8:30 am ET slightly higher than forecasts sending the 10 year up 5 bps and MBSs 21 bps lower than yesterday. Month/month PPI expected +0.2% increased 0.3% (June PPI revised from +0.1% to 0.0%), year/year PPI thought to be +0.7% increased 0.8%, (June revised from +0.1% to +0.2%). Excluding food and energy month/month +0.3% against +0.2% forecast, (June revised from +0.1% to -0.1%), year/year forecasts +2.3% reported at +2.4%. The increase in prices, the first time in three months adds to the focus the Fed may not be finished increasing rates as has been the growing outlook. Service costs rose by the most in nearly a year, reflecting increases in categories including portfolio management, outpatient care and passenger transportation.

At 9:30 am the DJIA opened -79, NASDAQ -101, S&P -20. 10 year at 9:30 am 4.15% +5 bps. FNMA 6.0 30 year coupon at 9:30 -22 bps from yesterday’s close and -71 bps from 9:30 am yesterday.

Redfin said the housing market has recouped $3 trillion from the last year. A shortage of listings has pushed up prices, boosting the total value of US homes to a record $47 trillion. Just 1% of US homes changed ownership this year, the lowest share in at least a decade.

At 10 am the mid-month U. of Michigan consumer sentiment index, expected at 71.3 from 71.6 in July; the index hit at 71.2.

PRICES @ 10:00 AM

10 year note: 4.13% +3 bp

5 year note: 4.26% +4 bp

2 year note: 4.86% +2 bp

30 year bond: 4.25% +2 bp

30 year FNMA 6.0: @9:30 am 99.94 -22 bp (-71 bp from 9:30 am yesterday)

30 year FNMA 5.5: @9:30 am 98.32 -21 bp (-102 bp from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 98.48 -33 bp (-85 bp from 9:30 am yesterday)

Dollar/Yuan: $7.2370 +$0.0198

Dollar/Yen: 144.81 +0.06 yen

Dollar/Euro: $1.0959 -$0.0023

Dollar Index: 102.77 +0.24

Gold: $1948.80 -$0.10

Bitcoin: 29,459 +17

Crude Oil: $82.89 +$0.07

DJIA: 35,156 -20

NASDAQ: 13,630 -108

S&P 500: 4451 -18

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.