Mortgage rates depend on daily changes in the bond market. Bonds focus on the Fed and the economic data that shapes its decisions. Today’s data isn’t necessarily high on the Fed’s radar, but the market reacted because of its implications on other data.
Specifically, the S&P Purchasing Managers’ Indices (PMIs) came in below expectations for the services and manufacturing sectors. PMIs can be considered quite timely general barometers for the economy, as they ask companies’ financial decision-makers about the current state of affairs as well as their future plans.
One of the topics is “prices”, which is the hottest topic in pricing these days. In this regard, the data points to a decline in price pressures in April due to a deterioration in demand and a slight slowdown in the labor market.
The S&P PMIs are not as large in rate terms as a similar set of PMIs published by the Institute for Supply Management (ISM), but we have to wait until next week for those. The advantage of today’s data has helped spur the response. Fortunately, rates have been favorable, with the average lender down to the lowest levels since Friday April 12.
Mortgage rates depend on daily changes in the bond market. Bonds focus on the Fed and the economic data that shapes its decisions. Today’s data isn’t necessarily high on the Fed’s radar, but the market reacted because of its implications on other data.
Specifically, the S&P Purchasing Managers’ Indices (PMIs) came in below expectations for the services and manufacturing sectors. PMIs can be considered quite timely general barometers for the economy, as they ask companies’ financial decision-makers about the current state of affairs as well as their future plans.
One of the topics is “prices”, which is the hottest topic in pricing these days. In this regard, the data points to a decline in price pressures in April due to a deterioration in demand and a slight slowdown in the labor market.
The S&P PMIs are not as large in rate terms as a similar set of PMIs published by the Institute for Supply Management (ISM), but we have to wait until next week for those. The advantage of today’s data has helped spur the response. Fortunately, rates have been favorable, with the average lender down to the lowest levels since Friday April 12.
