Last week we saw rates decline at the beginning of the week as some bond-friendly news hit the markets.
On Monday the ISM index dropped from 49.2 down to 48.7, which was weaker than expectations of 49.6. The part of this report that weighed the most on the markets was that prices fell from 60.9 all the way down to 57 which was also lower than estimates and showed that it is cheaper to manufacture goods which points to lower inflation which the Bond market likes.
On Tuesday the JOLTS report came out and showed that job openings totaled 8.059 million, which was much lower than the 8.34 million expected. This was a weak report and pushed bond yields lower, helping mortgage rates.
On Wednesday the ADP Private Employment report came out and it was a miss, showing that there were only 152,000 jobs created during the month of May, which was much weaker than the 190,000 that was originally expected.
Friday’s data showed stronger job growth via the BLS Jobs report, so some gains were lost, but overall rates have been trending lower.
By: Jon Iacono