Updated on June 20, 2019 10:37:47 AM EDT
Last week’s unemployment figures showed that 216,000 new claims for unemployment benefits were filed, down from the previous week’s 222,000 initial filings. A decline in claims is a sign of a strengthening employment sector, so we should consider the data bad news for bonds and mortgage rates. Fortunately, this report is only a weekly snapshot and doesn’t carry too much weight in the markets. That is why we haven’t seen a reaction in this morning’s mortgage rates.
Also posted this morning was Mays Leading Economic Indicators (LEI). It revealed no change compared to the 0.1% increase that was expected. The softer reading is favorable for bonds and mortgage rates because the indicators attempt to predict economic growth over the next several months. This is a minor piece of data that showed a small variance from forecasts, meaning we likely won’t see the markets react to it. Still, it is good news for mortgage rates.
Tomorrow has one report set for release that may influence mortgage rates. That will be the National Association of Realtor’s Existing Home Sales report for May at 10:00 AM ET. This report tracks resales of existing homes, giving us a measurement of housing sector strength. It is considered to be moderately important to the markets, but can also influence mortgage rates if it shows a sizable difference between forecasts and actual results. Analysts are currently expecting to see an increase in sales. As with most economic reports we get, weak numbers would be favorable to mortgage rates.
©Mortgage Commentary 2019