Market Watch August 1 2016

Dated: 08/01/2016

Views: 736

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This Week in Review

 

We are finishing out what has been a busy week with the interest rate markets trading back at lower levels and looking more positive. A somewhat neutral perceived statement out of the Fed made no assessment of the balance of risks, therefore gave no inclination as to whether a rate hike at the September meeting is a strong possibility or not. No mention was made of housing or trade, while no significant changes to the outlook on inflation or labor markets were mentioned. While the Committee remains mindful of ‘global economic and financial developments’, they seemed comfortable saying that ‘near term risks to the economic outlook had diminished’. 

Overall, we think there is still a small possibility of a September hike, although we still believe it’s going to take a stronger improvement in the economic data to fully justify it. Thanks to these comments out of the FED earlier this week, the markets have reacted well and now given us a chance to do better in the short-term. 
As we look at technical charts on the 10yr, we have held support below 1.62% and have now traded back under the low point of our recent range at 1.52%. A close now below ~1.48% points to a test back at 1.42% and improved rates/pricing. Any stall back over ~1.57% and the trend will be neutralized. That said, we will set the new short-term trading range for the 10yr at ~1.48-1.57%. Looking to the week ahead, we have another busy calendar with top tier data points such as ISM Manufacturing, Personal Income/Spending, Factory Orders, Durable Goods, as well as the July Employment report on Friday.

 

Upcoming Market DataMonday - August 1
 
PMI Manufacturing Index
ISM Manufacturing Index
Construction Spending
 
Tuesday - August 2
 
Motor Vehicle Sales
Personal Income and Outlays
 
Wednesday - August 3
 
MBA Mortgage Applications
•  ADP Employment Report
PMI Services Index
ISM Non-Mfg Index
 
Thursday - August 4
 
Jobless Claims
Bloomberg Consumer Comfort Index
Factory Orders
 
Friday - August 5
 
Employment Situation
International Trade
 
Featured Blog

 

6 Steps To Take Before A Kitchen Remodeling Project

PrimeLending, a PlainsCapital Company

It’s 7:15 a.m. on a weekday and you’re frantically running around, trying to get everyone out the door on time. You’re making breakfast, packing lunches and prepping the crockpot for tonight’s dinner. However, as you rush around the island in your kitchen, you begin to realize that the space is no longer working for your family. In addition to being outdated, there’s just not enough room for everyone anymore. Sound familiar? If so, it might be time to consider remodeling your kitchen. But where do you start? …

Learn More >

 

CALL TODAY TO DISCUSS THIS WEEK'S MARKET TRENDS.
 
 
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  Jason Kaiman
  Production Manager
  NMLS: 406027
  Office: 515-418-9608
  Cell: 515-205-5244
  10647 Justin Drive
  Urbandale, IA 50322
 
jkaiman@primelending.com
lo.primelending.com/jkaiman

 

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All loans subject to credit approval. Rates and fees subject to change. Mortgage financing provided by PrimeLending, a PlainsCapital Company. Equal Housing Lender. © 2016 PrimeLending, a PlainsCapital Company (NMLS: 13649).

 

EHL

 

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