U.S. economic data weighs heavily on market
Posted May 31, 2012
Count them – no fewer than five weaker-than-expected economic data reports over the last 24 hours have pushed the 10-year bond yield into a territory that many of us in housing thought we would never see in our lifetime – a yield of 1.53 percent!
Forget Europe, we have enough economic concerns right here in our own backyard.
- Pending home sales were weaker than expected on Tuesday.
- Jobless claims were higher than expected on Wednesday.
- The ADP Private Sector Jobs Report showed that creation of private sector jobs was weaker than expected Wednesday morning.
- Both 1st Quarter GDP revised economic growth came in weaker than expected and the Chicago PMI Report dropped significantly in May from April on Wednesday as well.
So what does that spell for us in housing? Good news of course – at least temporarily in the form of continued attractive interest rates!
Weaker economic data usually helps to put downward pressure on Treasury Yields, and it did again this morning in the form of a 1.53 yield on the 10-year, and so the mortgage rate train continues its journey downward.
All eyes are now focused on Friday’s employment report, which should give us an indication as to what direction the overall unemployment trend is heading.