Commentary: New day - same old story. Trading activity in the mortgage market remains thin and lethargic.
The Labor Department reported this morning the number of Americans standing in-line to file first-time claims for government jobless benefits edged higher by 10,000 during the week ended July 16th. Tragically, mortgage investors were spot-on with their expectations for further weakness in this week's round of employment data - a condition all ready reflected in current market prices. Even though the actual number was slightly stronger than consensus estimates calling for a week-over-week gain of 5,000 new claims - the report was "toothless" with respect to its impact on the current trend trajectory of mortgage interest rates.
Investors' attention has returned once again to watching for further signs that Washington lawmakers will reach a substantive agreement to reduce the country's ballooning deficit and raise the debt ceiling. The majority of credit market participants have no doubt approval for an expansion of Uncle Sam's borrowing power will be forthcoming from Congress by the August 2nd deadline. The details of such an agreement are still very much in doubt - and it's the details that will influence the forward looking trend trajectory of mortgage interest rates the most. Until this veil of uncertainty is lifted - look for mortgage interest rates to move back and forth in a very tight trading range.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
