What's going on and why does it matter?
Today's ADP employment numbers blew way past market expectations. Mortgage bonds may take this opportunity to give back some of their recent gains ahead of tomorrow's official employment numbers. Mortgage bonds have been hugging their 200-day moving average in recent trading sessions. The 200-day moving average is likely to operate as a stiff ceiling of technical resistance because mortgage bonds haven't traded above that level since before the US Presidential elections last November. The Fed's mortgage bond buying activity today is limited to just $625 million of 15-year conventional mortgage bonds.
What should you do about it?
Lock your rate to be safe, especially while mortgage bonds continue to trade near the top of their recent range.
.....
Economic reports that may impact
mortgage rates this week:
|
Date
|
Report
|
Period
|
Prior
|
Estimate
|
Actual
|
|
Tue
30 May |
Personal
Income |
Apr
|
0.2%
|
0.4%
|
0.4%
|
|
Tue
30 May |
Core PCE
Price Index |
Apr
|
-0.1%
|
0.1%
|
0.2%
|
|
Tue
30 May |
Consumer
Confidence |
May
|
120.3
|
119.8
|
117.9
|
|
Thu
1 Jun |
ADP National
Employment |
May
|
174,000
|
180,000
|
253,000
|
|
Thu
1 Jun |
Initial Jobless
Claims |
Week of
May 22 |
234,000
|
238,000
|
248,000
|
|
Thu
1 Jun |
Construction
Spending |
Apr
|
-0.2%
|
0.5%
|
|
|
Thu
1 Jun |
ISM
Mfg. PMI |
May
|
54.8
|
54.6
|
|
|
Thu
1 Jun |
Total
Vehicle Sales |
May
|
16.88M
|
16.9M
|
|
|
Fri
2 Jun |
Non-Farm
Payrolls |
May
|
211,000
|
182,000
|
|
|
Fri
2 Jun |
Average
Earnings |
May
|
0.3%
|
0.2%
|
|
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