This week’s economic calendar will offer mortgage investors their first glimpse of overall activity in May with Wednesday’s ISM Manufacturing Index and Thursday’s ISM Service Sector Index serving as the warm-up act for Friday’s much anticipated May Nonfarm Payroll report. Most economists believe this week’s round of reports will be supportive of steady to perhaps fractionally lower mortgage interest rates.
The technical perspective has moved to a level where it is now out of sync with economists’ fundamental views. My battery of technical indicators is flashing an increasing number of signals suggesting a near-term profit-taking sell-off in the mortgage market may be imminent. Be ready to move on very short notice should the technical perspective prove to be accurate.
THE MARKET IS ALWAYS RIGHT! … YOU AND I ARE SOME OF THE TIME
