Daily Rate Lock Advisory | Americanheromortgage

Indexes Affecting Rate Lock

Medium

Positive

ISM Service Index

Unlike most Mondays, we did get some relevant economic data this morning. The Institute for Supply Management (ISM) posted their June non-manufacturing index (aka service index) at 10:00 AM ET, revealing a reading of 54.0. This was lower than May’s 54.5 and a tad softer than the 54.3 that was expected. A decline in the index means fewer surveyed service sector executives felt business improved last month than did the previous month. As a sign of slower economic activity, we can label the report good news for mortgage rates.

Medium

Unknown

None

There are no scheduled economic releases tomorrow or Wednesday morning. The remainder of the week brings us little to drive bond trading and mortgage rates. The calendar has just one monthly housing report, along with a couple of long-term Treasury auctions and the minutes from last month’s FOMC meeting midweek. This leaves outside factors such as Fed speeches and geopolitical headlines to drive trading some days.

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Unknown

none

Overall, we are expecting to see a fairly calm week for mortgage rates unless something unexpected happens. Wednesday is likely to be the most active day with the 10-year Treasury Note auction and FOMC minutes to influence them. Friday stands out as a good candidate for calmest since there is nothing scheduled that day. Even though there is little happening this week, it still would be prudent to keep an eye on the markets if still floating an interest rate and closing in the near future, just in case something hits the newswires.

Rate Lock Advisory

Mortgage Rate Trend

Indexes Affecting Rate Lock

ISM Service Index

None

none

Float / Lock Recommendation