Archive
A Look ahead at events that can effect Mortgage bond prices
| Economic Indicator |
Release Date & Time |
Consensus Estimate |
Analysis |
| Existing Home Sales | Monday, Oct. 25, 10:00 am, et |
4.23m | Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates. |
| Consumer Confidence | Tuesday, Oct. 26, 10:00 am, et |
50 | Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates. |
| 2-year Treasury Note Auction | Tuesday, Oct. 26, 1:15 pm, et |
None | Important. $35 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| Durable Goods Orders | Wednesday, Oct. 27, 8:30 am, et |
Up 0.8% | Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates. |
| New Home Sales | Wednesday, Oct. 27, 10:00 am, et |
300k | Important. An indication of economic strength and credit demand. Weakness may lead to lower rates. |
| 5-year Treasury Note Auction | Wednesday, Oct. 27, 1:15 pm, et |
None | Important. $35 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| Q3 Advanced GDP | Thursday, Oct. 28, 8:30 am, et |
Up 2.4% | Very important. The aggregate measure of US economic production. Weakness may lead to lower rates. |
| 7-year Treasury Note Auction | Thursday, Oct. 28, 1:15 pm, et |
None | Important. $29 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates. |
| Q3 Employment Cost Index | Friday, Oct. 29, 8:30 am, et |
Up 0.5% | Very important. A measure of wage inflation. Weakness may lead to lower rates. |
| U of Michigan Consumer Sentiment | Friday, Oct. 29, 10:00 am, et |
68.5 | Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates. |
Employment Cost Index
The employment cost index is a quarterly report issued by the Department of Labor. The report measures the growth of wages, salaries, and benefits costs over a certain period of time. Though ECI figures are usually weeks old, the data remains the best indicator of employment price pressures considering it factors employees’ total compensation.
If wage pressures become evident, higher expectations of inflation also tend to arise. However, increasing compensation does not necessarily lead to increased inflationary pressures. Oftentimes, increased productivity enables employers to increase compensation without increasing the costs of their goods or services. Be cautious heading into this release.
Maine Mortgage Market Update 10.26.2010
Mortgage bond prices remain lower Tuesday morning adding to the losses seen Monday afternoon. Rates remain under pressure as mortgage companies sell bonds to cover locked borrowers. Thin trading conditions are adding to the pressure.
In news released this morning, consumer confidence stood at 50.2. Traders were expecting confidence at 49.00. This data was not bond friendly.
With no more news set for release today, traders will watch stocks as they await the outcome of the Treasury auction of $35B in 2-year notes. Results are expected by 1:15 pm ET.
