Manufacturing Sector Strength Brings Mortgage Rates Up
1 May 2007
Mortgage Market Rate Outlook: Float
Today’s mortgage rates increased after stronger than expected economic data was reported. The Institute for Supply Management (ISM) showed a reading of 54.7 up from an expected reading of 51.0 which shows that manufacturing activity is strong and is a bad indicator for the direction of mortgage rates.
Tomorrow we will receive the March Factory Orders report, which will also measure manufacturing sector strength.
On Thursday, we’ll get the Labor Department’s Q1 Productivity and Costs data, which will give us a read on employee productivity in the workplace. Strong productivity is usually interpreted as preventative of inflation and positive for mortgage rates.
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