Mon. May 23
Tues. May 24, 10:00 a.m. ET April New Home Sales +0.3% vs. last +0.3%
Sharp declines in the weekly mortgage purchase application
index strongly suggest demand for new homes remains
sluggish -- a condition that will surprise no one. This data will
likely exert little, if any influence on the direction of mortgage
interest rates today.
Tues. May 24, 1:00 p.m. ET Treasury sells $35 billion of 2-year notes
The relative short maturity of this security should be attractive
to a large number of investors. If so, this event will likely have
little, if any meaningful impact on the direction of mortgage
rates.
Wed. May 25, 8:30 a.m. ET April Durable Goods Orders -2.2% vs. last +4.1%
The headline number is probably skewed by the transportation
orders component of this data set as vehicle and parts
production has been held back by Japan related supply
disruptions. Look for mortgage investors to shrug this report
off this time around.
Wed. May 25, 1:00 p.m. ET Treasury sells $35 billion of 5-year notes
Worries over Washington’s inability to reach a deficit cutting
deal and weak liquidity in front of the approaching Memorial
Day weekend may cause bidding to be soft at today’s auction.
If so, expect to see some upward pressure on mortgage
interest rates to develop this afternoon.
Thurs. May 26, 8:30 a.m. ET Initial jobless claims for the week ended 5/21 Down 9,000 to 400,000
Until the total number of first-time claims for jobless benefits
once again falls below 400,000 on a week-over-week basis --
this data will tend to support steady mortgage interest rates.
Thurs. May 26, 8:30 a.m. ET Revised Q1 Gross Domestic Product +2.1% vs. last +1.8%
The economy’s first-quarter growth rate is almost certain to be
revised fractionally higher – a condition that is already well
priced into the mortgage market.
Thurs. May 26, 1:00 p.m. ET Treasury sells $29 billion of 7-year notes
If the yield on this offering rises -- it is highly likely mortgage
interest rates will begin to climb higher as well. As I mentioned
earlier -- worries over Washington’s inability to reach a deficit
cutting deal and weak liquidity in front of the approaching
Memorial Day weekend may cause bidding to be soft at today’s
auction. Pay attention here.
Fri. May 27, 8:30 a.m. ET
April Personal Income +0.4% vs. last +0.5%
Spending +0.5% vs. last +0.6%
PCE Index +0.2% vs. last +0.1%
In the off-chance spending and/or the personal consumption
expenditure index (the Fed’s favorite measure of inflation at the
consumer level) posts a reading greater than its respective
consensus estimate -- look for mortgage interest rates to edge
higher on the day.
Fri. May 27, 2:00 p.m. ET Mortgage market closes early for Memorial Day Holiday
Mon. May 30 Mortgage market closed for the Memorial Day Holiday
