by Calculated Risk July 3, 2024 7:27 PM
From Matthew Graham of Mortgage News Daily: Mortgage rates fall after weak services report
“Data dependent” is one of the phrases we’ve heard a lot recently from the Federal Reserve when it comes to its interest-rate setting policy. While the Fed doesn’t directly dictate mortgage rates, bond markets tend to trade on the same data the Fed values.
The main report of the day, the ISM Services Index, while not at the top of the Fed’s list, has been a perennial market mover when it comes to bonds and therefore interest rates. Today’s release was much weaker than expected. All else being equal, weak data correlates with lower interest rates.
Bonds rose immediately after the announcement, which prompted mortgage lenders to set lower interest rates today. Some lenders had already announced their initial rates for the day, and some of them announced positive repricings by the end of the day.
The bond market is closed tomorrow for a holiday but will reopen on Friday morning to digest a more significant economic report, the key employment report.30-year fixed rate 7.08%)
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Thursday:
• all US Market It will be closed In compliance independence day
