This week brings us the release of a couple important pieces of economic data in addition to some moderately important reports. There are a total of four or five reports that are worth watching and are most likely to affect mortgage rates.
Monday late morning: The first is the Institute for Supply Management's (ISM) will release it's manufacturing index. Analysts are expecting to see a 48.0 reading in this month's release, meaning that sentiment slipped slightly during May. A smaller reading will be good news for the bond market and mortgage shoppers. An unexpected increase could bring higher mortgage rates.
Tuesday: The only relevant news is the Commerce Department's release of April's Factory Orders data. Currently forecastors are expecting to see an increase in orders of 0.1%. This is not expected to create much movement in the mortgage market this month.
Wednesday morning: The revised 1st Quarter Productivity and Costs report will be released. This piece of data will not have much of an impact on the bond market or mortgage pricing unless it varies greatly from its forecasted reading of 2.5%.
Wednesday afternoon: Bring the release of The Institute of Supply Management's (ISM) servicing index. Analyst expect to see a reading of 51. If this reading varies much from forecasts, we may see volatility in the markets and mortgage rates. However, if the opposite happens there will be little movement on the mortgage markets.
Thursday: No relevant economic data being released.
Friday: The Department of Labor releases May's Employment Data. Analyst expect to see a increase of 5.1% in unemployment claims. A higher than expected climb in unemployment claims coupled with a large drop in payroll would be good news for the mortgage markets. However, the opposite could bring higher interest rates.
Monday and Friday are the two most important days this week for the mortgage markets.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
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