Monday, June 24, 2024
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Updated on June 21, 2024 10:08:02 AM EDT

May’s Existing Home Sales report was one of today’s two 10:00 AM ET economic releases. The National Association of Realtors announced a 0.7% decline in home resales last month. This was a slightly softer decline than was expected, but close enough to forecasts to be a non-factor for this morning’s rates. Also worth noting is that the median existing home sales price set a new record high, beating the previous one set in June 2022. We are labeling the report neutral to slightly favorable for bonds and mortgage rates.

The Conference Board released their Leading Economic Indicators (LEI) for March this morning also. They showed a 0.5% decline compared to expectations of a 0.3% drop. The decline means the indicators are predicting weaker economic activity than many had thought. Since bonds tend to thrive in weaker economic conditions, this report is good news for rates. However, the report doesn’t carry enough significance in the markets to allow a better reaction in this morning’s trading.

Next week brings us a relatively large number of economic reports and other events that may affect mortgage rates. Most of what is scheduled is moderately important at best, but one of the reports includes the Fed’s preferred inflation gauge. That release will likely have a strong impact on the markets and mortgage pricing next Friday. Monday doesn’t have anything we need to be concerned about, meaning weekend news could have the biggest impact on rates as the week begins. Look for details on all of next week’s activities in Sunday evening’s weekly preview.

 ©Mortgage Commentary 2024