Mortgage Rates Improved a Tad While Stock Indexes Fall
Mortgage rates moved a tad to the lower side as mortgage bonds improved steadily throughout the day. Even though it may have been a small amount, it was enough to save a few charges on the rates that you may have been quoted yesterday.
Tax cuts moving slowly now, as the Senate tossed a grenade in their bill by keeping an alternative minimum tax in the bill but businesses are fighting back as are some Republicans, 40 of the House members sent a signed letter to the conference committee to remove the ATM arguing that keeping it would undercut several goals of the legislation, including fostering investment in the U.S. Protests erupted in Washington against the tax bill falling back on it is a tax cut for the rich.
There is a move in Congress to change when the government will run out of money - according to data submitted unless an extension of the debt ceiling is complete by December 8th the government will shut down. There will be no government shutdown regardless the political shenanigans and procedures used. On December 22nd the debt ceiling for all of 2018 has to be dealt with.
So far this week not a word from the financial media about the November employment report due out on Friday. All focus on the tax cut progress. Tomorrow Nov employment will move up the ladder of concern when ADP reports its private job growth in Nov, expecting an increase of 192K up from 235K in October.
Also tomorrow revisions to Q3 productivity and unit labor costs; productivity expected to have increased 3.2% and better than 3.0% on the preliminary release. Unit labor costs expected +0.3% and down from +0.5% on the preliminary. Stronger productivity equals lower unit labor costs. Productivity measures the growth of labor efficiency in producing the economy's goods and services. Unit labor costs reflect the labor costs of producing each unit of output.
Last comment has not been stated too much lately, the stock indexes declined today after starting in positive territory. You do not see that very often these days. Likely a little worry about the tax cut movements. New reports out yesterday indicating the use of stock options has doubled on a daily basis recently - kind of hedge - not getting out but buying insurance against a major sell-off that may occur before the end of the year. How much more optimism can be anticipated at these levels? At its high the DJIA +134, closed -109.
In summary, it was another flat day for rates Tuesday, despite some modest MBS gains as the day wore on. My pricing was virtually identical to Monday's. A few lenders repriced marginally better mid-PM. Treasury yields dropped to 2.35, continuing their small recent rally. I think floating overnight may be worth the risk, for borrowers with small risk tolerance. Still no established trend until we determine tax reform's fate.
Tax cuts moving slowly now, as the Senate tossed a grenade in their bill by keeping an alternative minimum tax in the bill but businesses are fighting back as are some Republicans, 40 of the House members sent a signed letter to the conference committee to remove the ATM arguing that keeping it would undercut several goals of the legislation, including fostering investment in the U.S. Protests erupted in Washington against the tax bill falling back on it is a tax cut for the rich.
There is a move in Congress to change when the government will run out of money - according to data submitted unless an extension of the debt ceiling is complete by December 8th the government will shut down. There will be no government shutdown regardless the political shenanigans and procedures used. On December 22nd the debt ceiling for all of 2018 has to be dealt with.
So far this week not a word from the financial media about the November employment report due out on Friday. All focus on the tax cut progress. Tomorrow Nov employment will move up the ladder of concern when ADP reports its private job growth in Nov, expecting an increase of 192K up from 235K in October.
Also tomorrow revisions to Q3 productivity and unit labor costs; productivity expected to have increased 3.2% and better than 3.0% on the preliminary release. Unit labor costs expected +0.3% and down from +0.5% on the preliminary. Stronger productivity equals lower unit labor costs. Productivity measures the growth of labor efficiency in producing the economy's goods and services. Unit labor costs reflect the labor costs of producing each unit of output.
Last comment has not been stated too much lately, the stock indexes declined today after starting in positive territory. You do not see that very often these days. Likely a little worry about the tax cut movements. New reports out yesterday indicating the use of stock options has doubled on a daily basis recently - kind of hedge - not getting out but buying insurance against a major sell-off that may occur before the end of the year. How much more optimism can be anticipated at these levels? At its high the DJIA +134, closed -109.
In summary, it was another flat day for rates Tuesday, despite some modest MBS gains as the day wore on. My pricing was virtually identical to Monday's. A few lenders repriced marginally better mid-PM. Treasury yields dropped to 2.35, continuing their small recent rally. I think floating overnight may be worth the risk, for borrowers with small risk tolerance. Still no established trend until we determine tax reform's fate.
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