Daily Market Report 6/15/21

By
Mortgage and Lending with Evolve Bank & Trust NMLS #275652

http://MikesDailyMarketReport.com:  We got a long list of economic data to report today, so be prepared.  The inflation data for the Wholesale sector continues to rise, as the Producer Price Index (PPI) rose 0.8% in May; and the Core PPI (excludes food and energy) rose 0.7%, bringing it's YoY from 4.1% in April to 4.8% in May.  Retail Sales in May dropped 1.3%; however, it's April numbers were revised higher, from 0.0% to 0.9%.  When you exclude "big ticket items", like Autos, then it dropped only 0.7% in May; and it's April numbers were revised higher too, from -0.8% to 0.0%.  Manufacturing in the NY region slowed a bit in June, as the Empire State Index dropped from 24.3 in May to 17.4 in June.  Capacity Utilization rose to 75.2%; and Industrial Production rose 0.8% in May (due to Auto production).    Home Builders are losing confidence, as the NAHB Home Builders Index dropped from 83 in May to 81 in June, as they face delays and rising costs due to the lack of materials, rising costs and finding workers.  Business Inventories dropped 0.2% in April.  Stocks are all in Negative Territory today.  Investors are shrugging off the economic calendar and are focused on the upcoming FOMC, which begins today.  The Fed will provide their policy statement tomorrow, so be prepared for a choppy ride.  Investors are waiting for comments on Tapering, especially with the MBS purchases, as the Housing Market is on fire; Inflation -is it permanent or transitory (and estimate of when prices might normalize); and the jobs data.  MBS did most of their damage ahead of the Fed meeting yesterday and is currently Down about 2bps; so, Mortgage Rates remain Unchanged from yesterday's pricing (after close of Markets).  Yields are testing it's 100 DMA again, which is holding it below at 1.50%.

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Comments (1)

Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hopefully, now that lumber prices have started to fall, that drop in the Home Builders Index will be temporary. Thanks for the report Mike!

Jun 15, 2021 12:38 PM
Mike Bjork

I agree!  Since the Credit Crisis, their pace of building new homes has dramatically dropped off.  The new inventory could provide some relief!

Jun 16, 2021 09:26 AM