{"id":4557,"date":"2019-10-07T08:00:12","date_gmt":"2019-10-07T12:00:12","guid":{"rendered":"http:\/\/migonline.com\/blog\/?p=4557"},"modified":"2019-10-07T16:47:16","modified_gmt":"2019-10-07T20:47:16","slug":"mig-market-watch-october-7th-2019","status":"publish","type":"post","link":"https:\/\/migonline.com\/blog\/2019\/10\/07\/mig-market-watch-october-7th-2019\/","title":{"rendered":"MIG Market Watch, October 7th, 2019"},"content":{"rendered":"

MARKET COMMENT<\/strong><\/p>\n

Mortgage bond prices were higher this week which put downward pressure on rates. Disappointing data and uncertainty about the future of the economy resulted in stronger demand for US debt instruments. Rates were lower Monday and a huge miss on the Institute of Supply Management release Tuesday morning put additional downward pressure on rates. There was a slight selloff Tuesday afternoon after the runup in prices but that was countered by weak ADP employment data Wednesday morning. ADP payrolls increased 135K versus the expected 150K. Weekly jobless claims were 219K. Analysts expected a 215K reading. Factory orders fell 0.1%. Unemployment was 3.5% versus the expected 3.7%. Non-farm payrolls increased 136K versus the expected 145K. Mortgage interest rates finished the week better by approximately 5\/8 of a discount point.<\/p>\n

LOOKING AHEAD<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Economic Indicator<\/strong><\/td>\nRelease Date & Time<\/strong><\/td>\nConsensus Estimate<\/strong><\/td>\nAnalysis<\/strong><\/td>\n<\/tr>\n
Consumer Credit<\/td>\nMonday, Oct. 7,
\n3:00 pm, et<\/td>\n		$24B<\/td>\nLow importance.\u00a0 A significantly large increase may lead to lower mortgage interest rates.<\/td>\n<\/tr>\n
Producer Price Index<\/td>\nTuesday, Oct. 8,
\n8:30 am, et<\/td>\n		Up 0.2%,
\nCore up 0.2%<\/td>\n		Important.\u00a0 An indication of inflationary pressures at the producer level.\u00a0 Weaker figures may lead to lower rates.<\/td>\n<\/tr>\n
3-year Treasury Note Auction<\/td>\nTuesday, Oct. 8,
\n1:15 pm, et<\/td>\n		None<\/td>\nImportant.\u00a0 Notes will be auctioned.\u00a0 Strong demand may lead to lower mortgage rates.<\/td>\n<\/tr>\n
10-year Treasury Note Auction<\/td>\nWednesday, Oct. 9,
\n1:15 pm, et<\/td>\n		None<\/td>\nImportant.\u00a0 Notes will be auctioned.\u00a0 Strong demand may lead to lower mortgage rates.<\/td>\n<\/tr>\n
Consumer Price Index<\/td>\nThursday, Oct. 10,
\n8:30 am, et<\/td>\n		Up 0.2%,
\nCore up 0.1%<\/td>\n		Important.\u00a0 A measure of inflation at the consumer level.\u00a0Weaker figures may lead to lower rates.<\/td>\n<\/tr>\n
Weekly Jobless Claims<\/td>\nThursday, Oct. 10,
\n8:30 am, et<\/td>\n		212K<\/td>\nImportant.\u00a0 An indication of employment.\u00a0\u00a0 Higher claims may result in lower rates.<\/td>\n<\/tr>\n
30-year Treasury Bond Auction<\/td>\nThursday, Oct. 10,
\n1:15 pm, et<\/td>\n		None<\/td>\nImportant.\u00a0 Bonds will be auctioned.\u00a0 Strong demand may lead to lower mortgage rates.<\/td>\n<\/tr>\n
U of Michigan Consumer Sentiment<\/td>\nFriday, Oct. 11,
\n10:00 am, et<\/td>\n		93.3<\/td>\nImportant.\u00a0 An indication of consumers\u2019 willingness to spend.\u00a0Weakness may lead to lower mortgage rates.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Manufacturing Weakness<\/strong><\/p>\n

The Institute for Supply Management (ISM) index last week flashed a huge warning sign that caught everyone\u2019s attention. ISM printed at 47.8 which was considerably weaker than the expected 50.2 reading. The ISM Manufacturing Index is based on surveys of more than 300 manufacturing firms and monitors employment, production, inventories, new orders and supplier deliveries. It is one of the first data releases each month and influences the tone of both investor and business confidence. A composite index reading of 50 can be thought of as a \u201cswing point.\u201d A reading above 50 implies an increase in economic activity, while a reading below 50 indicates a decline. The ISM report is difficult for economists to forecast because there is little data upon which to base an educated guess. The report has a large \u201csurprise factor\u201d and can cause market swings as we saw last week. The big concern going forward is whether the report is an anomaly or a sign of future economic trouble.<\/p>\n","protected":false},"excerpt":{"rendered":"

MARKET COMMENT Mortgage bond prices were higher this week which put downward pressure on rates. Disappointing data and uncertainty about the future of the economy resulted in stronger demand for US debt instruments. Rates were lower Monday and a huge miss on the Institute of Supply Management release Tuesday morning put additional downward pressure on … Continue reading MIG Market Watch, October 7th, 2019<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":4561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/4557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/comments?post=4557"}],"version-history":[{"count":2,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/4557\/revisions"}],"predecessor-version":[{"id":4559,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/4557\/revisions\/4559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media\/4561"}],"wp:attachment":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media?parent=4557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/categories?post=4557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/tags?post=4557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}